Analyst Note| Chelsey Tam |
The Ministry of Industry and Information Technology is reported to have had a meeting with Internet platforms such as Tencent, Alibaba, Bytedance, Baidu, and NetEase regarding three compliance standards, surrounding the unblocking of visits to external links in instant communication software. The deadline for implementation is reported to be Sept. 17. If the platforms do not implement these standards before the deadline, relevant departments will take action such as supervision, and removing the app from app stores. Tencent said it will embrace the requirements on a step-by-step basis under the premise of safety and security. We maintain our fair value estimates for Tencent and Alibaba, as there are both pros and cons in opening up.