Caixin
Aug 05, 2021 09:19 PM
BUSINESS

Investors Lose Interest in Short-Video Platform Kuaishou

What’s new: The price of Kuaishou Technology Co. Ltd.’s Hong Kong-listed shares plummeted to an all-time low on Thursday, the day after the short-video giant announced a pullout from the U.S. market.

The company’s equities fell by 15.02% to close at HK$89.40 ($11.50), representing a nearly 80% decline in value from its record high of HK$415 soon after it completed a $5.4 billion initial public offering in February.

The background: On Wednesday, Kuaishou said that it will stop servicing its overseas app Zynn on Aug. 20, adding that its strategy for competing in foreign markets “remains unchanged.”

The short-video platform briefly rose to the top of the U.S. download charts last year thanks in part to its strategy of paying users to sign up and refer friends.

But it was later removed from the Google Play Store amid accusations of cloning rival app TikTok’s layout, operating predatory pricing schemes and stealing content from other platforms.

Kuaishou CEO Su Hua said in June that the company has about 1 billion monthly active users (MAUs) across its global platforms, which include its wildly popular eponymous app in China.

By comparison, TikTok and its Chinese sister app Douyin are estimated to have a total of around 1.2 billion users, according to figures provided by the platforms last year.

Contact reporter Matthew Walsh (matthewwalsh@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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