Beijing-based online giant, ByteDance has laid off hundreds of employees as it struggles to cope with China’s latest round of big-tech regulations
The owner of TikTok ByteDance had to shut down a significant portion of its online education sector in order to comply with the nation’s new laws.
Another company called GoGo Kid will be forced to shut down completely, as China’s government moves in on the $100 billion industry.
The new regulations include a ban on private companies from teaching children how to earn profits and even raise capital…
In addition to this, the industry is not allowed to hire foreigners or teach school content to children.
The newly imposed regulations sparked widespread market concerns and triggered a $1 trillion wipeout from Chinese equities.
TikTok rival plummets 15 per cent
Kuaishou Technology fell the most on record after a post-listing lockup on sales of its shares expired.
The company has fallen more than 15% in Hong Kong, the most since a February listing.
The stock is now down more than 20% from its listing price.
A six-month lockup period on the TikTok rival expired yesterday allowing some of the video giant’s backers to finally dump their stock.
This all comes after the company shut down Zynn, a video sharing-app, marking an end to the failed attempt to challenge TikTok.
