- China drafted new regulations to cap internet users' daily monetary spending on digital tipping as a part of a renewed crackdown on the $30 billion live-streaming industry, the Wall Street Journal reports.
- China also looked to set a daily limit on live-streamers earnings and tighter censorship over the content.
- The report noted that live-streaming services in China, including those by ByteDance Ltd, Kuaishou Technology (OTC:KUASF), and HUYA Inc (NYSE:HUYA), commanded an audience of more than 700 million in 2021.
- HUYA's live-streaming revenues accounted for more than 80% of its total sales of $1.8 billion in 2021.
- Kuaishou's live-streaming sales accounted for 40% of its total revenue in 2021.
- The WSJ report further noted that China was concerned about the live-streaming sector's rapid and relatively unregulated growth, which frequently featured sexualized content and generated fraud and deceptive behavior complaints.
- China weighed a daily limit of 10,000 yuan ($1,570) that live-streaming hosts can accept.
- Price Action: HUYA shares traded lower by 4.57% at $5.01 in the premarket on the last check Wednesday.
