28 April 2024: Douyu has no hopes?
Douyu used to enjoy the glory and fame pre gaming and livestreaming crackdown and tech crackdown in 2021 till 2023. Since then, tech regulations tightening since 2021 has seemed better treatment given the rough environment faced by China.
Tough outlook coupled with high youth unemployment make China willing to relook into its treatment of tech regulatory environment. This is why games approvals have seen an increasing number. Even a u turn in potential tightening regulatory environment concerning gaming has unwinded.
However, I do not expect douyu to see an improvement in its situation. After its CEO has been hauled and released on bail for potential infringement of gambling rules led to a flight of livestreamers. Even Tencent is unlikely to pour more resources into douyu. let's take a look at huya where it's chairman is from Tencent. This shows that Tencent has chosen huya over douyu and there is likely more investments to be made where benefits should accrue to Huya rather than Douyu.
As always, this should not be construed as any investment or trading advice. $DouYu(DOYU)$ $TENCENT(00700)$ $Huya Inc.(HUYA)$ $KUAISHOU-W(01024)$ $Snap Inc(SNAP)$
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