Equity Monday: China boosts pressure on its tech sector as Duolingo's IPO looks to raise a few more bucks
Jul 26, 2021
The latest developments in Asian stocks reveal a significant decline, primarily due to China's ongoing regulatory crackdown on tech sectors, especially edtech. Companies can no longer go public and must operate non-profit, leading to a drop in global edtech stocks. In contrast, American tech shows resilience, with Rivian securing a whopping $2.5 billion in funding for its production goals. Meanwhile, Didi faces a share decline amidst these pressures. And let’s not forget the intriguing Bitcoin performance over the weekend!
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insights INSIGHT
China's EdTech Crackdown
China's new regulations restrict online tutoring companies.
These companies must transition to non-profit models and cannot go public.
insights INSIGHT
Tile Education's Stock Plunge
Chinese edtech company Tile Education's stock plummeted drastically.
This happened due to the new government regulations on the edtech sector.
question_answer ANECDOTE
Jam City SPAC Deal Termination
The Jam City SPAC merger was canceled due to market conditions.
DPCM Capital, the SPAC partner, will seek other business combinations.
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Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.
This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here.
Ever wake up to just a massive wall of news? That was us this morning, so we had to pick and choose. But since this show is about getting you caught up, we decided to focus on the largest, broadest new information that we could:
Asian stocks were down, European shares are lower, and American equities are set to open underwater. Bitcoin had a great weekend, however.
China's edtech crackdown continued over the weekend, with the country's ruling party setting new rules for online tutoring companies; they can no longer go public and will be forced to become non-profit entities. Chinese edtech stocks around the world fell.
China's larger tech crackdown continued over the weekend and into the week, with new moves against the present-day business models of both food delivery companies, and Tencent Music. The former must ensure minimum incomes, while the latter must give up exclusive rights deals. Shares fell.
All that and we had a good time. Hugs and love from the Equity crew, chat Wednesday!
Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.
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