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Lex: China live-streaming: virtual money

As tech giants reassess business models, investors should do the same with their expectations

Teenagers in China have, on occasion, blown all their families’ savings on live-streaming performers. Local regulators were bound to notice. Tighter controls now ban minors from making virtual gifts on video-streaming platforms, as well as limiting spending by any single user.

There are also new curbs on online shopping via livestreams. That will interfere with one of the fastest-growing local retail trends. Shoppers are increasingly buying products real-time as they watch their favourite livestream performer try on an outfit or the latest make-up colours. Ecommerce giants Alibaba and JD.com have started to rely on live-streaming for growth this year.

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