Platform stocks from China

Tencent, Kuaishou tech, BiliBili, Huya, Douyu, etc are facing the toughest challenge ever in the last 7 years. These companies not only face a shift in regulatory environment but their past successful business models are also facing significant pressure to evolve.

Koolearn has sort of evolved from education platform to that of one relying on livestreaming to sell merchandise. Markets did like this concept but how many companies can really do it. In fact, the bigger the companies, the more internal resistance there will be. This is so because the culture is ingrained and people who are there for years will pose a challenge. But when retrenchments happened, which did indeed happen for alot of Chinese tech companies, the morale plunged.

You would have noticed by now that tencent has broken to around 244 HKD today and the trend is still on the downside. Similarly for bilibili and kuaishou which have broken down below 52 weeks low.

Nothing looks good.