Tech Roundup: Wukong Takes Gaming Industry by Storm, Alibaba to Tap Mainland Investors

The Tech Roundup covers key technology news in China and Asia. Here’s a summary of the major points:

1. The Tencent-backed game "Black Myth: Wukong" has created significant buzz in the video game industry, achieving over 2.1 million concurrent players on Steam upon release, surpassing popular titles like "Cyberpunk 2077" and "Elden Ring" [para. 2][para. 3]. The game, based on the Chinese mythological figure Monkey King and the classic novel "Journey to the West," owes part of its success to governmental support and substantial development resources [para. 4]. However, its long-term commercial success remains uncertain due to limited monetization opportunities for console games [para. 5].

2. Alibaba Group Holding Ltd. has upgraded its Hong Kong listing to primary status, which is expected to draw considerable investment from the Chinese mainland. This move was prompted by strategic considerations amid rising U.S.-China tensions and aims to connect to Shanghai and Shenzhen bourses [para. 6][para. 7]. Despite this maneuver, Alibaba faces challenges such as increasing competition and sluggish consumer spending in China. The company recently reported only a 4% revenue increase and a 27% drop in profit, highlighting these difficulties [para. 8].

3. Baidu Inc. reported a small decrease in revenue, which underscores the struggles it faces in pivoting from search ads to AI-driven services amid an economic downturn in China [para. 9]. For the quarter ending in June, Baidu's revenue was 33.9 billion yuan ($4.7 billion), slightly below projections, while net income was 5.5 billion yuan, surpassing estimates [para. 10]. The company’s generative AI model "Ernie" has contributed to sales in ad and cloud services. However, Baidu still faces stiff competition in the AI sector from Alibaba and Tencent and remains reliant on advertising for revenue [para. 11].

4. Nio Inc., a Chinese EV maker, announced a plan to place battery charging stations in all of China’s 2,800+ counties by mid-2025 [para. 12]. The company also aims to offer its battery swap service in over 2,300 counties by the end of 2025, with more regions to follow in 2026 [para. 13]. To achieve this, Nio launched a partnership program involving six companies, including a subsidiary of China Energy Engineering Co. Ltd. [para. 14].

5. Huawei Technologies Co. Ltd.’s smart car unit attained a valuation of 115 billion yuan ($16 billion) post a recent investment by EV-maker Avatr Technology Inc. [para. 15]. Avatr, backed by Chongqing Changan Automobile Co. Ltd. and Contemporary Amperex Technology Co. Ltd., is set to make the payment in three instalments, which involves the integration of Huawei’s smart car tech and talent into the unit. Additionally, Avatr will gain a seat on the seven-member board [para. 16].

6. Volant Aerotech Co. Ltd., a Chinese startup focusing on electric vertical takeoff and landing aircraft, completed a new funding round, raising hundreds of millions of yuan [para. 17]. Supported by investors like Beijing Robot Industry Fund and others, the funding is part of Volant’s A1 Series, raising $100 million aimed at advancing R&D and accelerating airworthiness certification and commercial market development [para. 18][para. 19][para. 20].

This summary encompasses essential updates on recent developments in the Chinese tech landscape across various sectors, illustrating significant strides and ongoing challenges faced by companies.