Inside China Tech: a matter of Honor and a ‘multibillion dollar fraud’

This week, we focus on two high profile deals involving Chinese tech companies. First, Huawei Technologies announced that it was selling its budget smartphone brand Honor amid tough US sanctions. Second, Chinese search giant Baidu is also buying social media firm Joyy’s live-streaming business YY Live, but short seller Muddy Waters released a report calling Joyy “a multibillion-dollar fraud” days later, sending the latter’s shares tumbling. Finally, we have an in-depth look at how the Covid-19 work-from-home trend has breathed new life into the laggard PC market.

TF International Securities analyst Kuo Ming-chi is best known for his Apple product predictions, but his comments last month about how Huawei could consider selling its Honor budget smartphone business to survive US sanctions turned out to be extraordinarily prescient as well.