China Internet Weekly (20Jan2020): 18,000 Game Developers Bankrupt, PDD Sued in 1,765 Lawsuits

The Weekly will be suspended for two weeks and be back on February 10, as normally Chinese authorities and companies do not release significant news during the Chinese New Year. The news we can expect is that three tutoring companies will release their quarterly results on January 20^th and 21^st. They are TAL Education, New Oriental (EDU), and EDU’s subsidiary Koolearn (1797 HK).

• ByteDance bought music copyrights from Tencent Music (TME US).
• Over 18,000 game developers went bankrupt in 2019.
• Pinduoduo (PDD US) has been sued in 1,765 lawsuits from inception to January 2020.
• Altaba Inc (AABA US) planned to sell all remaining shares in Alibaba Group (BABA US).
  

Ratings of our coverage in China:

• Buy: Alibaba (BABA), Tencent (700 HK), JD.com (JD), Meituan (3690), TAL Education (TAL), New Oriental (EDU).
• Hold: Ctrip.com (CTRP), Autohome (HTHM), 58.com (WUBA), NetEase (NTES)
• Sell: Tencent Music (TME), Baidu (BIDU), Weibo (WB), Pinduoduo (PDD)