netease

Chinese streaming service NetEase Cloud Music seemed set to go public after receiving approval from the Hong Kong Stock Exchange. However, Reuters has now reported that the IPO has been delayed amid collywobbles over the current regulatory pressure on technology companies in China.

“The deal was due to launch this week but was put on hold on Monday… given the uncertain conditions facing China’s tech companies following a regulatory crackdown ordered by Chinese officials,” claimed its report, citing two sources.

This may be less about music than it is about games, which is an industry that NetEase is deeply involved in. There is more on the potential games crackdown in this piece (also from Reuters) last week, triggered by an article in state media comparing online gaming to opium. NetEase had been hoping to raise up to $1bn by spinning off Cloud Village (the parent company of NetEase Cloud Music) while retaining a majority ownership and voting power.

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Stuart Dredge

Music Ally's Head of Insight

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