Chinese government acquires stake in video platform Kuaishou, a TikTok rival

According to reports, the Chinese government acquired a sizable equity position in Kuaishou, the country's second-largest short-video platform and a direct competitor of Douyin, TikTok's Chinese half.

The Beijing city government, which controls Beijing Radio and Television Station, was used to buy the stake at Kuaishou. According to records on Chinese corporate data source Qichacha, cited by media like the South China Morning Post, it spent RMB1.01 million for a 1% interest in Beijing Kuaishou Technology, which is the mainland Chinese division of Kuaishou.

Yang Yuanyi, the co-founder of Kuaishou, owns most of the company and holds broadcast licences.


The Hong Kong Stock Exchange, where Kuaishou shares are listed, was not informed of the transaction. This may not be essential, though, as the shares of several Chinese companies traded on stock exchanges outside of the mainland are merely financial proxies and do not truly support ownership.



Shi Yesen, an executive at Beijing Radio and Television Station, is believed to be appointed to Kuaishou's board of directors on the same day the investment was noted.

Both the SOE investment and the board appointment are in line with the Chinese government's strategy of gaining more influence over media enterprises in the private sector, including the authority to veto content.

Kuaishou had 587 million average monthly users in August. Users from its sizable international operations in developing nations like Brazil, Pakistan, and Indonesia may be included in that figure.

FAQs:

1. Who controls Beijing Radio and Television Station?
   The Beijing municipal government controls Beijing Radio and Television Station.
2. How many users did Kuaishou have in August?
   Kuaishou had 587 million average monthly users in August.