JPM expects decline in China's live streaming market growth this year

JOYY

16/05/2022 12:45

** J.P.Morgan expects a decline in China's live streaming
market size, which includes only listed companies, for the first
time in 2022 due to a weak macro backdrop and increased
regulatory scrutiny
    ** JPM expects a 6% drop in market size this year, after a
rapid growth from 2017 to 2020, when the market growth nearly
tripled
    ** China's internet watchdog on Friday started a two-month
special campaign to clean up "chaos" in online live-streaming
and short video businesses, part of a broader plan to promote
what is deemed as appropriate and legal content  urn:newsml:reuters.com:*:nL2N2WD0H1
    ** JPM prefers Kuaishou  1024.HK  to Bilibili  9626.HK 
 BILI.O , Hello Group  MOMO.O , JOYY  YY.O , Tencent Music
 TME.N  and HUYA  HUYA.N  within China's live-streaming sector
    ** Brokerage upgrades JOYY to "neutral" from "underweight"
and lifts PT to $40 from $25 to reflect improving profit in
overseas markets
    ** JPM believes Kuaishou and BILI's live streaming revenue
will be relatively resilient among all platforms
    ** "We believe new regulations on tipping ranking and PK
(player kill) feature will have a negative impact on live
streaming revenue" - JPM
    

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))