Abandoning hong kong as a regional hub for functions and data storage is certainly not a straightforward decision for western technology teams. silicon valley giants such as facebook, twitter and bing tend to be reviewing their particular functions in response to beijings sweeping brand new controls, but have not however pulled away. usage of the mainland chinese marketplace can be too big to ignore. for asian technology groups, however, the faster the greater with regards to making the call.
South korean google competitor naver features quit hong-kong which makes it 1st huge foreign technology group to take action in response to chinas brand new security guidelines. it offers relocated its data backup center that has been in hong-kong since 2016 to singapore.
It is a great move. the results of leaving hong-kong and risking beijings ire tend to be few. most about two-thirds of navers profits are manufactured in its real estate market. the usa and japan take into account the remainder.
Messaging systems including japan-based whatsapp rival line majority possessed by naver are an important factor to profits, accounting for longer than a 3rd of total product sales. asia blocked line messenger six years ago.
An outbreak-induced surge in regional e commerce transactions features boosted product sales. analysts expect second-quarter working profit to increase above 70 percent. which also implies more personal information from footwear sizes to charge card figures move across their particular data centers. addressing users privacy issues quickly will help keep that development.
Maintaining its operations in hong-kong could have additionally generated difficulties down-the-line. the united states market has actually shown a surprisingly powerful supply of development. webtoons, or web-based comics, have actually garnered unprecedented interest amid lockdowns. almost a fifth of navers webtoon people are actually in the us.
Stocks of naver do have more than doubled in the past year on expectations this trend will stay. navers smart move should help make sure stocks stick to an upwards trajectory.
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