China
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FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse, France, March 20, 2019. REUTERS/Regis Duvignau
April 23, 2019
PARIS (Reuters) – A management shake-up at Europe’s Airbus accelerated on Tuesday as Nicolas Chamussy was replaced as the head of Space Systems.
Airbus said the 51-year-old space engineer would have an unspecified future role, while his job as head of space activities including the company’s 50 percent share of the ArianeGroup rocket venture will be taken by Jean-Marc Nasr.
The move comes less than four months after Nasr, 57, was named head of Asia-Pacific, responsible for group strategy and industrial issues and regional sales for Airbus Defence & Space.
Chamussy is a former chief of staff to Tom Enders, who stepped down earlier this month to make way for planemaking chief Guillaume Faury, and has been facing mounting competition from a new breed of private U.S. and other space contractors.
Companies such as Elon Musk’s SpaceX, LeoSat Enterprises, and Canada’s Telesat are working to enable data networks with hundreds or even thousands of tiny satellites that orbit closer to Earth than traditional communications satellites, a radical shift made possible by leaps in laser technology and computer chips.
Faury, 51, has implemented a tighter structure designed to simplify Europe’s largest aerospace group, while sidelining a number of executives previously close to Enders or former planemaking boss Fabrice Bregier, according to company watchers.
La Tribune, which first reported the changeover at space systems, said the reorganization could lead to other departures, accelerating a sweeping management overhaul already driven partly by an ongoing corruption probe and scheduled retirements.
An Airbus spokesman said Chamussy would stay inside Airbus and declined further comment on management changes.
The Space Systems division makes up 27 percent of Airbus Defence & Space revenues, which grew 4.4 percent last year to 11.1 billion euros ($12.5 billion). Space spending is rising but established players face increase competition within the United States, China, Japan and India.
Airbus is seeking to shore up its position by prioritizing a fledgling market for constellations of tiny satellites designed to broaden internet access and support new services. It launched six mini-satellites in February, the first of at least 600 to be launched in the next two to three years together with partner OneWeb.
(Reporting by Tim Hepher, editing by Louise Heavens)
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Security officers rest on steps at an exhibition to mark China’s Space Day 2019 on April 24, in Changsha, Hunan province, China, April 23, 2019. REUTERS/Aly Song
April 23, 2019
BEIJING (Reuters) – China’s national space agency said on Tuesday it will soon announce rules to regulate commercial rocket manufacturing, test flights and launches, state media reported, as the number of private startups in the nascent sector surged in the past year.
A space law has been included in the legislative plan of parliament, and could be introduced in the next three to five years, China Space News reported, citing a presentation at an industry conference in Hunan province.
The number of private firms engaged in the commercialization of China’s space industry have increased to almost 100 from 30 last year, including manufacturers of rockets and satellites, according to China Space News.
Commercial space enterprises must strictly follow state regulations on safety and confidentiality to protect national security, Wu Yanhua, deputy director of the China National Space Administration, was cited as saying at the conference.
Space startups are racing to develop rockets capable of delivering low-cost micro-satellites with commercial applications. None of them has succeeded yet, but that has not stopped Chinese venture capital from pouring fresh financing into the sector in recent months.
Beijing has encouraged private investors to participate in its push in a bid to commercialize some aspects of the space industry, setting up funds and opening up government launch sites for their use.
One of China’s near-term tasks is to develop major satellite systems of remote sensing, communications and navigation, according to a government white paper in December 2016.
China will mark its 4th annual Space Day on Wednesday as it celebrates its achievements in aerospace and telegraphs its ambitions to explore the moon and other celestial bodies.
(Reporting by Ryan Woo; Editing by Kim Coghill)
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FILE PHOTO: Daniele Schillaci, executive vice president global marketing and sales for Nissan, speaks during the media preview of the 2016 New York International Auto Show in Manhattan, New York March 23, 2016. REUTERS/Eduardo Munoz
April 23, 2019
TOKYO (Reuters) – Japan’s Nissan Motor Co on Tuesday said the executive responsible for its Nissan, Datsun and Infiniti brands was leaving, as it announced a management reshuffle to strengthen governance following the ouster of former boss Carlos Ghosn.
Nissan said Daniele Schillaci, an executive vice- president who had been responsible for the three brands and for all operations in the Japan, Asia and Oceania regions, had chosen to leave the company to pursue an opportunity closer to his native home in Europe.
Nissan also said it had named executive Yasuhiro Yamauchi as chief operating officer to strengthen daily operations.
It appointed an executive dedicated to performance recovery efforts and added executives overseeing major markets such as Japan, North America and China to the its executive committee.
Such changes, it said, were based on recommendations from an outside governance panel that it received last month. The external committee last month concluded a three-month audit of Nissan’s governance and put blame squarely on what it called Ghosn’s concentration of power.
Ghosn, who has been arrested on charges of financial misconduct, has denied all the allegations against him and said he is the victim of a boardroom coup by those who opposed his drive for a closer alliance with top shareholder Renault SA.
A representative for Ghosn has previously said the committee’s findings were “part of an unsubstantiated smear campaign against Carlos Ghosn to prevent the integration of the alliance and conceal Nissan’s deteriorating performance”.
(Reporting by David Dolan; editing by David Evans)
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Local people look on in a jade mine where the mud dam collapsed in Hpakant, Kachin state, Myanmar April 23, 2019. REUTERS/Stringer
April 23, 2019
By Shoon Naing
NAYPYITAW (Reuters) – More than 50 people were feared to have been killed in Myanmar when jade miners and machinery were buried under a mound of tailings late on Monday, a member of parliament and a rescue worker said.
Three bodies had been pulled from the debris, Tin Soe, a lawmaker representing the jade-rich Hpakant area of Kachin state in the north, said on Tuesday.
Deadly landslides and other accidents are common in the poorly regulated mines of Hpakant.
A total of 54 workers for two mining companies, along with 40 machines and vehicles including backhoes and trucks, were trapped when the large refuse pile collapsed late at night on Monday, he said.
“They won’t survive. It is not possible because they are buried under mud,” Tin Soe told Reuters by phone. “It is very difficult to retrieve the bodies.”
Hpakant’s fire brigade chief, Aye Thein, said a search was mounted after dawn on Tuesday and rescue efforts were going on.
Myanmar’s Ministry of Information confirmed on Facebook that 54 workers were missing. It identified the companies involved as Shwe Nagar Koe Kaung and Myanmar Thura.
Reuters was unable to reach either company for comment.
Environmental advocacy group Global Witness put the value of jade production in Myanmar at about $31 billion in 2014. Experts say most of the stones are smuggled to China.
(Reporting by Shoon Naing; Writing by Simon Lewis; Editing by Robert Birsel)
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FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 16, 2019. REUTERS/Staff
April 23, 2019
By Agamoni Ghosh and Medha Singh
(Reuters) – European shares fell on Tuesday as battery maker Umicore kicked off a busy week of earnings with a grim outlook and investors grew concerned about China cutting additional support to its economy, but a rally in oil and gas stocks helped temper losses.
The pan-European STOXX 600 index fell 0.3 percent by 0930 GMT after seven straight sessions of gains, with all major indices in the red except oil major-heavy London’s FTSE 100 which rose 0.4 percent.
Earnings started to roll in on a not-so-positive note with Umicore tumbling 16 percent, after the Belgian group warned revenue and earnings growth in 2020 will be lower than previous indications due to delays in the electric vehicle and energy storage markets.
Umicore’s slide weighed heavily on Belgium’s blue chip Bel 20 Index, pulling it 1.5 percent lower.
Car part suppliers Plastic Omnium and Faurecia also reported first quarter results. Plastic Omnium slid after warning of a decline in worldwide auto production, but Faurecia rose 1.5 percent after the company met its full-year target.
Belgium’s Melexis, which supplies semiconductor solutions for cars, slipped 6 percent after first quarter net income tumbled.
“We’re pausing for breadth ahead of a fairly busy week of earnings after a decent winning streak,” said Jasper Lawler, head of research at London Capital Group in London.
The banking index eased from six-month highs with major European banks as UBS, Credit Suisse and Barclays slated to report earnings late this week after last week’s mixed bag of results from big Wall Street banks.
“We’ve seen the likes of record profits from J.P. Morgan but nothing close in Europe. The numbers aren’t going to be great,” said Lawler.
Earnings numbers from some of the biggest S&P 500 companies, including Boeing Co, Amazon.com Inc and Facebook Inc, are also due this week.
Payments company Wirecard was among the biggest decliners after Germany’s markets regulator Bafin’s two-month ban on short-selling ended on Friday.
Ahold Delhaize slid after the Dutch supermarket warned that a strike at its Stop & Shop chain in U.S. would hurt its underlying 2019 profit margin, as it missed out on around $200 million on Easter week sales.
Renault fell 1.4 percent after Nissan Motor Co Ltd said it would reject a management integration proposal from its French partner and called for an equal capital relationship, according to a Nikkei report.
Also weighing on sentiment was Beijing’s indication to tone down its stimulus measures following unexpected signs of recovery from first-quarter economic data last week.
CRUDE LIFT
The oil and gas sector was among the lone bright spots with Royal Dutch Shell, British Petroleum and Total, up between 1.7 percent and 2 percent.
Oil prices were at 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers, mostly Asian, to stop buying from Tehran.
Surging oil prices, however, took a toll on airline stocks. Air France, EasyJet plc, Lufthansa and Ryanair , all shed between 2 percent and 4 percent.
Getinge was the top performer on the STOXX 600 after the Swedish medical technology company beat first quarter sales estimates and said restructuring measures will boost profit in the second half of the year.
Thomas Cook jumped 14 percent after a Sky News report that the world’s oldest tour operator was tentatively approached by several parties regarding a takeover of its tour operating division or the entire company.
(Reporting by Agamoni Ghosh and Medha Singh, Editing by William Maclean and Ed Osmond)
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FILE PHOTO: Headquarters of the People’s Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee/File Photo
April 23, 2019
By Kevin Yao
BEIJING (Reuters) – China’s central bank is likely to pause to assess economic conditions before making any further moves to ease lenders’ reserve requirements, after better-than-expected growth data reduced the urgency for action, policy insiders said.
Although the central bank’s easing bias remains unchanged, it sees less room this year for cutting reserve requirement ratios (RRRs) – the share of cash banks must hold as reserves – as fiscal stimulus plays a bigger role in spurring growth, according to government advisers involved in internal policy discussions.
The People’s Bank of China (PBOC) is also worried that pumping too much cash into the economy could reignite bubbles over time, the policy insiders said, and wants to save some of its policy ammunition.
“In the short term, it’s not necessary to use RRR cuts to boost economic growth,” one policy adviser told Reuters. “Monetary policy should leave some room – if economic uncertainties rise or economic conditions deteriorate, the central bank could ease policy.”
The chance of a cut in benchmark interest rates, meanwhile, has further diminished, as the central bank focuses on reforming its interest rate regime this year, the policy insiders said.
LESS ROOM FOR RRR CUTS
China’s economy grew a steady 6.4 percent in the first quarter, defying expectations of a further slowdown, with factory output, retail sales and investment in March all growing faster than expected following a raft of expansion-boosting measures in recent months.
Still, economists do not expect a sharp recovery in the world’s second-largest economy, as many private firms grapple with high funding costs, while external demand may weaken in the coming months as the world economy loses steam.
Optimism is rising, however, that China and the United States will reach a trade deal in coming weeks.
“The possibility of seeing big policy changes is not big. We may maintain the strength of policy support but it could become more structural,” said a second policy source.
The PBOC did not immediately respond to Reuters’ request for comment.
The PBOC has cut RRRs five times since the start of 2018, lowering the ratio to 13.5 percent for big banks and 11.5 percent for small-to medium-sized lenders.
Central bank Governor Yi Gang said in March that there was still some room to cut RRRs, but less so than a few years ago.
The PBOC is likely to cut RRRs for small banks to encourage more lending to small and private firms – which are vital for economic growth and job creation – said the policy insiders, who have penciled in at least one such “targeted” RRR cut this year.
“Monetary policy will maintain counter-cyclical adjustments and keep liquidity ample as interest rates should go lower for the real economy,” said one of the policy insiders.
A Reuters poll, conducted before the first-quarter data release on April 17, showed economists expected the central bank to deliver three more RRR cuts of 50 basis points in each of the remaining three quarters of 2019.
But the stronger-than-expected growth data compelled some economists to trim their forecasts for RRR cuts. UBS now expects another 100 bps cuts this year, with the next one likely in June-July, instead of the 200 bps it had forecast earlier.
ECONOMIC UNCERTAINTIES LINGER
A statement on Friday from the Politburo, a key decision-making body of the ruling Communist Party, said China would maintain policy support for the economy, which still faced “downward pressure” and difficulties.
Authorities would strike a balance between stabilizing economic growth, promoting reforms, controlling risks and improving livelihoods, the Politburo said, adding that China would move forward with structural efforts to control debt levels and prevent speculation in the property market.
First-quarter economic growth was backed by record new bank loans of 5.81 trillion yuan ($865.61 billion) and local government special bond issuance of 717.2 billion yuan, which rocketed ninefold from a year earlier.
Beijing has ramped up fiscal stimulus, unveiling tax and fee cuts amounting to 2 trillion yuan to ease burdens on firms, while allowing local governments to issue 2.15 trillion yuan of special bonds to fund infrastructure projects.
Chinese leaders have pledged to ensure economic stability in a year that will mark the 70th anniversary of the founding of the People’s Republic, while vowing not to adopt “flood-like” stimulus that could worsen debt and structural risks.
The government’s target range for 2019 growth is 6-6.5 percent but growth of about 6.2 percent is seen needed this year and the next to meet the party’s longstanding goal of doubling GDP and incomes in the decade to 2020.
China’s growth slowed to a 28-year low of 6.6 percent last year, and further cooling is expected this year.
(Reporting by Kevin Yao; Editing by Alex Richardson)
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FILE PHOTO: A container ship is shown at port in Long Beach, California, U.S. July 16, 2018. REUTERS/Mike Blake
April 23, 2019
By Padraic Halpin
DUBLIN (Reuters) – A temporary government shutdown with no end in sight, rising trade conflicts and a global growth slowdown: the first quarter outlook for the U.S. economy did not look promising at the turn of the year.
But Friday’s gross domestic product data for the first three months of 2019 could strengthen the case that while the current period of global expansion is in its late stages, some of the biggest contributors have yet to run out of steam.
After China’s economy defied expectations that it would slow further in January-March, U.S. growth is expected to be 2.1 percent in the same period, although the range of analysts’ estimates was wider than usual at 1.0 to 2.9 percent.
If the Atlanta Federal Reserve’s GDPNow model, based on data already released, is to be believed, growth will come in almost at the top of that range and bang in between the 2.2 percent pace seen in Q4 2018 and July-September’s brisk 3.4 percent.
“Despite all the prophecies of doom, the U.S. economy did not collapse in the first quarter,” said Commerzbank economist Christoph Balz.
“On the contrary, next week’s GDP figures are likely to show decent growth. In addition, companies have boosted investment, which argues against an imminent recession.”
The Atlanta Fed raised its expectations after data last week showed domestic retail sales grew at their strongest pace in 1-1/2 years in March, the latest indication that growth in the quarter bounced back quickly after the longest shuttering of federal agencies in U.S. history ended on Jan. 25.
While a surprise narrowing in February’s U.S. trade deficit also implied a much stronger pace of growth, weak manufacturing output — which resulted in the first quarterly drop in production since President Donald Trump’s election — may explain the wide range in estimates.
The main wild card for Friday’s release could be private inventories, according to a number of analysts, including Unicredit, whose 1.3 percent GDP forecast sits at the more pessimistic end of the range.
“After pronounced stockpiling in the second half of the year, our forecast assumes that inventories were a significant drag in Q1. The latest numbers suggest that the drag may occur only later,” Unicredit analysts wrote in a note.
“CAUSE FOR HOPE”
The other key piece of data in a relatively quiet week is Germany’s Ifo business climate index, the main sentiment reading for Europe’s biggest economy, where the growth outlook has drifted in the opposite direction.
The German government cut its 2019 growth forecast for the second time in three months last week and now sees the economy growing just 0.5 percent as exporters struggle with weaker demand from abroad, trade tensions and uncertainty over Brexit.
Subsequent business surveys showed that while German manufacturing contracted for the fourth month in a row in April, buoyant services activity compensated. Wednesday’s Ifo print may offer some slight additional relief.
After a surprise rise in the March index to 99.6, analysts polled by Reuters see a further marginal improvement to 99.9, matching a brighter mood among German investors after last week’s ZEW survey improved for a sixth month.
“We believe the ZEW survey revealed that Germany’s economy is not out of the woods yet considering its most recent bout of weakness, but there is recent cause for hope again,” said Elmar Voelker, senior fixed income analyst at LBBW.
“Transferring the findings to the Ifo Business Climate Index, we would predict that Germany’s most important leading economic indicator will show its second successive rise in April, but the jump will be less significant than in the previous month.”
(Reporting by Padraic Halpin; Editing by Catherine Evans)
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FILE PHOTO: A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi
April 23, 2019
By Henning Gloystein
SINGAPORE (Reuters) – Asian buyers of Iranian crude are well placed to overcome the end of U.S. sanctions waivers as they have demonstrated they can live without it and as global producers have the capacity to make up a shortfall, according to analysts and trade data.
The United States on Monday demanded buyers of Iranian oil stop purchases by May or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers, most of them in Asia, to continue importing limited volumes.
The announcement came amid an already tight market as the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, including Russia, have been curtailing supply since January to prop up prices.
Global benchmark Brent crude futures rose to as high as $74.69 a barrel on Tuesday, the most this year. The surging crude will mean higher fuel costs for Asian economies. Iran’s four-biggest crude buyers are China, India, Japan and South Korea.
Despite the cost surge, supply shortfalls are unlikely.
The end of the waivers should cut Iranian exports by 900,000 barrels per day (bpd), Goldman Sachs said late on Monday. That is more than made up by “immediately available” spare capacity from producers including Saudi Arabia, the United Arab Emirates (UAE) and Russia of about 2 million bpd, which could rise to 2.5 million bpd next year.
In a statement on the end of the waivers, U.S. President Donald Trump said the United States, Saudi Arabia, and the UAE would ensure oil markets are fully supplied.
“The United States have more than proved that they are able to fill any voids left by sanctions,” said Matt Stanley, a broker with Starfuels in Dubai.
Even if U.S. output should fall short, Stanley said, “Saudi and the United Arab Emirates are going to ensure they will increase production to offset any loss in supply from Iran.”
Iran’s four main Asian buyers ramped up imports in March and April in anticipation of the end of the waivers. But before that, all the countries already showed they could dial down their purchases.
Before the sanctions, Iran was OPEC’s fourth-largest producer at almost 3 million bpd, but April 2019 exports have shrunk to around 1 million bpd, according to ship tracking and analyst data in Refinitiv.
(GRAPHIC: Iran seaborne crude oil & condensate exports – https://tmsnrt.rs/2DE8CHt)
THE BIG TWO
Iran’s biggest oil buyers are China and India.
China on Monday criticized the U.S. decision, but trade data shows it can cope with lower Iranian imports.
Ship tracking data in Refinitiv showed China’s crude imports from Iran averaging 500,000 bpd since the start of 2019, down from a 2018 peak of 800,000 bpd, and only 5 percent of its overall crude imports.
Dai Jiaquan, head of the Research Institute of China National Petroleum Corporation (CNPC), said on Tuesday that other suppliers could fill the gaps, particularly U.S. crude.
He noted that estimated U.S. crude output increases this year are between 1.6 million and 1.7 million bpd, that alone would outpace expected global oil demand growth of 1.2 million to 1.3 million bpd.
Adding spare capacity from OPEC means “there will not be short supply in the market,” said Dai.
The United States is now the world’s biggest oil producer, pumping more than 12 million bpd with exports topping 3 million bpd
India has also reduced Iranian purchases, averaging 300,000 bpd this year, around 6 percent of overall imports, down from a peak of 750,000 bpd in mid-2018, Refinitiv data showed.
India’s Oil Minister Dharmendra Pradhan said on Tuesday his country could access supplies from other producers to compensate for Iranian losses.
“Indian refineries are fully prepared to meet the national demand for petrol, diesel and other petroleum products,” he said.
(GRAPHIC: U.S. crude oil production & exports – https://tmsnrt.rs/2ULQiTd)
THE ALLIES
Close U.S. ally Japan halted all Iranian crude imports between November 2018 and January 2019, Refinitiv data showed, and imports since then have averaged below 200,000 bpd, equivalent to 5 percent of demand.
The tighter U.S. sanctions should have only a limited impact on Japan, Hiroshige Seko, the trade and industry minister, said on Tuesday.
South Korea also cut all of its Iranian oil imports between August and December 2018. This year, Korea has averaged around 300,000 bpd of imports, mostly of condensate, an ultra-light oil used by many of its refiners to make petrochemicals.
(GRAPHIC: Iran crude oil & condensate exports to Asia’s biggest buyers – https://tmsnrt.rs/2IAUWky)
(Reporting by Henning Gloystein in SINGAPORE; additional reporting by Muyu Xu in BEIJING, Jane Chung in SEOUL and Aaron Sheldrick in TOKYO; editing by Christian Schmollinger)
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FILE PHOTO: A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi
April 23, 2019
BEIJING (Reuters) – China’s Foreign Ministry said on Tuesday it has lodged representations with the United States over Washington’s plan to end waivers for Iranian oil imports.
“The decision from the U.S. will contribute to volatility in the Middle East and in the international energy market,” ministry spokesman Geng Shuang told a news briefing.
Washington has announced that all Iran sanction waivers will end by May, sending crude oil prices higher and pressuring importers to stop buying from Tehran.
(Reporting by Michael Pollard and Beijing Monitoring Desk; editing by Darren Schuettler)
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FILE PHOTO: A girl broadcasts live from a phone as she holds a selfie stick with a sign of the live-streaming platform DouYu during an event celebrating the new year in Wuhan, Hubei province, China, December 31, 2018. Picture taken December 31, 2018. REUTERS/Stringer
April 23, 2019
By Julia Fioretti
HONG KONG (Reuters) – China’s largest live-streaming platform DouYu International Holdings Limited, backed by social media and gaming giant Tencent Holdings Ltd, has filed for a U.S. initial public offering (IPO) of up to $500 million.
DouYu, which primarily focuses on the live-streaming of games, is one of several Chinese start-ups in the growing market for live-streaming in China, along with U.S.-listed rival Huya Inc and Huajiao.
The rapid growth of the live-streaming sector has seen China’s tech heavyweights – Tencent, Alibaba Group Holding and Baidu Inc – open their wallets to back a slew of firms in the hope it can boost existing services in e-commerce, social networking and gaming.
DouYu has exclusive streaming rights to 29 major tournaments in China, including League of Legends, PlayerUnknown’s Battlegrounds, and DOTA2, according to the draft prospectus which was uploaded to the U.S. Securities and Exchange Commission website overnight on Monday.
DouYu was the largest game-streaming platform by average total monthly active users (MAUs) on both mobile and PC during the fourth quarter of 2018, according to the prospectus. The company had 159.2 million MAUs in the first quarter of 2019, representing year-on-year growth of 25.7 percent.
It set a placeholder sum of $500 million for the IPO, which is used to calculate registration fees. The final IPO size could be different, though sources have previously told Reuters DouYu was looking to raise around $500 million.
DouYu’s IPO could be one of the largest this year by a Chinese company in the United States, together with that of Starbucks challenger Luckin Coffee which also filed overnight.
Chinese companies have raised $271 million through U.S. IPOs so far this year, with the biggest deal being that of Ruhnn Holding Limited which raised $125 million, Refinitiv data showed.
LOSS MAKING
China is the world’s largest game streaming market, with approximately 4.9 times the monthly active users of the U.S. market in 2018, the prospectus said.
DouYu’s active users spent an average of 54 minutes per day on the platform in the fourth quarter of 2018.
DouYu is still loss-making and reported a net loss of $127.4 million in 2018, up from $91.33 million in 2017. Revenues jumped 94 percent to $531.5 million last year.
The company significantly increased its sales and marketing expenses – which jumped 73 percent in 2018 – as well as its research and development expenses which increased 55 percent.
Most of DouYu’s revenues come from live-streaming through the sale of virtual gifts, accounting for 86.1 percent of its revenues, with the rest coming from advertisements and some revenue sharing with game developers and publishers, the prospectus showed.
Bank of America Merrill Lynch, JPMorgan and Morgan Stanley are the underwriters for DouYu’s IPO.
(Editing by Jacqueline Wong)
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