Technology Roundup – Pair of U.S.-listed China ADRs to list shares in Hong Kong, Trump vs. Twitter war escalates further

Published on: May 29, 2020
Author: Amy Liu

Pair of U.S.-listed China ADRs to list shares in Hong Kong

NetEase (NASDAQ:NTES) confirmed it will seek a secondary listing in Hong Kong in a letter to shareholders. The U.S.-listed Chinese online gaming company made the decision amid increased scrutiny over Chinese firms.

NetEase’s secondary listing follows the successful decision by Alibaba to raise capital in Hong Kong and could give needed boost to the financial hub.

NetEase did not disclose the amount of capital it plans to raise.

Update 9:30amET: (NASDAQ:JD) is also purported to have won approval from the Hong Kong exchange, according to the WSJ. It reportedly intends to raise up to $3 billion and list on June 18, the report indicated.

Trump vs. Twitter war escalates further

Twitter (NYSE:TWTR) overnight slapped a warning on a Trump tweet concerning the riots in Minnesota.

This Tweet violated the Twitter Rules about glorifying violence. However, Twitter has determined that it may be in the public’s interest for the Tweet to remain accessible.”

The president one hour ago responded, accusing Twitter of trying to stifle the speech of him and Republicans, while doing nothing about the other political party, not to mention China.

Trump: “Section 230 should be revoked by Congress. Until then, it will be regulated!”

Shares are down 0.8% premarket

Google pulls offers to thousands of contract workers – NYT

In a cost-cutting move caused by an advertising slump created by the COVID-19 pandemic, Google (GOOG, GOOGL) has rescinded offers to several thousand people who had agreed to work at the company as temporary and contract workers, The New York Times reports.

“We’re slowing our pace of hiring and investment” and “will not be moving forward” to add the people recruited by contracting agencies to work at Google, the company reportedly said in an email to the agencies.

The move affects more than 2,000 people globally who had signed offers with the agencies to be a contract or temp worker, according to the report.

It is not clear which countries are most affected in the decision, but some of the workers are in the U.S., India and the Philippines.

SpaceX prototype rocket explodes during test

A prototype of SpaceX’s (SPACE) Starship SN4 launch vehicle exploded this afternoon during a static fire test of the Raptor engine at the company’s development facility in Texas.

A few minutes after the test, which initially appeared successful, the Starship prototype identified as Serial Number 4 ruptured in a fiery explosion.

This prototype is distinct from SpaceX’s Falcon 9 rocket and Crew Dragon spacecraft, which is expected to launch NASA astronauts this weekend from Florida.

Zoom to roll out strong encryption for paying customers

Zoom Video (NASDAQ:ZM) unveils plans to strengthen encryption on video calls made by paying clients and institutions such as schools, but not for users of its popular free accounts.

The company previewed its intentions on a call with civil liberties groups and others yesterday, and Zoom security consultant Alex Stamos confirmed the plans in an interview with Reuters.

The plan is drawing mixed reactions from privacy advocates, with some saying Zoom should offer protected video more widely.

Providing full encryption to every meeting would mean that Zoom’s trust and safety staff would not be able to monitor what is happening or respond effectively to abuse in real time, Stamos said.

The shares rallied in the last hour of today’s trading to close +9.7% and a market value above $50B for the first time.