CIW News 28 Mar

Author

Elaine Wong
March 28, 2024

CIW Weekly, is now CIW News, an email newsletter on China digital and tech trends.

Join us as we navigate through the bustling digital streets of China's internet economy, uncovering insights and strategies that are setting the pace for the global digital future. Let’s dive in…

The number of "affluent households" in China, defined as those possessing assets over 6 million yuan (about US$830k), slightly decreased by 0.8%, totaling 5.14 million households. This decline of approximately 41,000 families from the previous year suggests a subtle yet noticeable shift in China's economic fabric.

The report further categorizes wealth into more refined segments, revealing that the number of “high-net-worth households” – those with assets exceeding 10 million yuan (US$1.38 million) – witnessed a 1.3% decrease, settling at 2.08 million households. This contraction, though marginal, underscores a broader economic recalibration affecting China’s wealthy.

In a groundbreaking development that is set to redefine digital communication, Kimi, the AI assistant developed by Moonshot AI (backed by Alibaba Group), has announced support for an unprecedented 2 million-character dialogue window.

This enhancement, achieved within just six months of its initial release in October 2023, signifies a monumental leap in AI capabilities.

The progress comes on the heels of Moonshot AI’s recent funding announcement, where it secured over $1 billion, with significant backing from tech giant Alibaba.

There's a slight decrease in the stickiness of user engagement with the internet, marking an 11.4-hour reduction in monthly average usage time. This shift suggests users are becoming more selective in their online activities, possibly seeking more meaningful content or balancing digital interaction with offline experiences.

  • Segments such as movie performances, train services, car services, and online tourism are experiencing notable growth.

  • A "new thriftiness" is emerging among consumers, who are now approaching spending with a mature, rational mindset. This cautious optimism doesn't equate to compromising on quality.

  • Over 30 million users are deeply involved in discussions around healthy eating, with a notable uptick in interest.

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BRIEF BLASTS

Kuaishou, Douyin/Tiktok’s main competitor in China, witnessed a substantial increase in user engagement, with average Daily Active Users (DAUs) rising to 382.5 million, a 4.5% growth from 2022, and Monthly Active Users (MAUs) reaching 700.4 million, up 9.4%. This surge illustrates the platform’s effectiveness in capturing and retaining user interest amidst intense competition.

Tencent’s fiscal narrative for 2023 is one of notable achievements, underscored by a 10% year-over-year growth in total revenues with 23% increase in gross profit. The FinTech and Business Services sector emerged as the largest revenue source, representing 31% of the total revenue.

Pinduoduo (owner of Temu)’s total revenues for the fourth quarter surged by 123% year-over-year to RMB88.88 billion, fueled by increases in online marketing services and transaction services, which witnessed a 357% growth in the latter category. This revenue boost was accompanied by a significant operating profit increase of 146% in the same quarter, reaching RMB22.39 billion.

China’s high-tech sector is driving an increasing amount of demand for goods and services in the world’s second-biggest economy, and its contribution could rival real estate by 2026, according to Bloomberg Economics.

China introduced new guidelines aimed at blocking Intel and AMD chips in government PCs and servers, the Financial Times reported on Sunday. The procurement guidance also seeks to sideline Microsoft’s Windows operating system and foreign-made database software in favor of Chinese solutions, the report said.

Apple to install Baidu AI on its iPhone 16 and other products in China, report says.

✈️ The Slovakian AirCar, powered by a BMW engine and running on normal fuel, has been bought by a Chinese firm. Hebei Jianxin Flying Car Technology Company in China has acquired exclusive rights to manufacture and use AirCar aircraft in a specific area.