Equity Research in HK and Mainland China

Li Tang

Highly experienced sell-side analyst with more than ten years of experience in the field of China’s in-depth policy-driven macro research in China (Beijing) .
Covering in equity research in HK and Mainland market mainly real estate, construction,steel sector.
The Ideas generation based on an analysis of China’s future direction and policy decisions fundamental analysis on sector impact, market drivers, timing and scale, combined with quantitative analysis.

China Addresses Issues with Community Group Purchase Platforms

Biden-Xi Virtual Summit Improved Ties But Risks Remain

China Issued Draft Rules on Outbound Data Transfers

China Publish Administration Regulation on Security Loopholes in Online Products

Thematic (Sector/Industry)

China Internet software and services / Thematic (Sector/Industry)

<ul>
<li>The State Administration for Market Regulation (SAMR) published two draft guidelines after market close last Friday, with the first document grouping internet platforms by their function and size, and the second statement listing their responsibilities, in order for internet platforms to standardise their operations, fulfil duties, and safeguard the rights of business operators and end customers on platforms. The public consultation of the two documents will last until 8 November.</li>
<li>We think the size-based grouping is more important than the second guideline which covers responsibilities of internet platforms, as the latter is not issuing new requirements.</li>
<li>We think this guideline is another milestone that sees changes to regulatory measures, refining actions to platforms on different business types and size in future.</li>
<li>We think the draft guidelines would work as a comprehensive checklist for internet platforms, especially the super large entities, which likely include <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1" rel="noopener">Alibaba Group (BABA US)</a>, Douyin, Alipay, and <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a> .</li>
</ul>


The State Administration for Market Regulation (SAMR) published two draft guidelines after market close last Friday, with the first document grouping internet platforms by their function and size, and the second statement listing their responsibilities, in order for internet platforms to standardise their operations, fulfil duties, and safeguard the rights of business operators and end customers on platforms. The public consultation of the two documents will last until 8 November.
We think the size-based grouping is more important than the second guideline which covers responsibilities of internet platforms, as the latter is not issuing new requirements.
We think this guideline is another milestone that sees changes to regulatory measures, refining actions to platforms on different business types and size in future.
We think the draft guidelines would work as a comprehensive checklist for internet platforms, especially the super large entities, which likely include Alibaba Group (BABA US), Douyin, Alipay, and Meituan (3690 HK) .


SAMR Drafts Overarching Guideline to Regulate Internet Platforms