Bitcoin, bikes, bots and more: seven of the biggest tech stories of 2017
From the dizzying ascent of bitcoin, the boom-and-bust cycle of China’s bike-sharing market, and the large bets made on artificial intelligence, here are some of the major technology stories this year.
If there is a common thread that weaves through some of this year’s biggest technology stories, it is the inevitability of change and the disruption that follows.
Bitcoin built up interest in the trading of virtual currencies, which was embraced by start-ups as a way to raise funding from savvy investors without being subject to regulation.
Bike-sharing services quickly caught on in China, where pedal power combined with the efficiency of mobile apps and digital payments to create the country’s hottest transport trend.
The activities of those three companies continued to grab headlines because of the intersecting spheres of interest they have created in the fields of online search, e-commerce, gaming, social media, financial technology, cloud computing and recently, artificial intelligence (AI).
What follows represent some of the most widely read tech stories in the South China Morning Post this year:
Riding the cryptocurrency wave
While stock markets around the world reached all-time highs this year ahead of the US Federal Reserve’s interest rate increase on December 13, their gains were relatively insignificant compared with the performance of cryptocurrency bitcoin.
The world’s most traded digital money, bitcoin has grown in value from about 39 US cents to more than US$18,000 in just eight years, while doubling over December with US$290 billion in market capitalisation.
Bike-sharing blues
China’s bike-sharing market had been one of the most popular new sectors for private equity firms, venture capitalists and angel investors. It has attracted more than US$2 billion in funding over a 19-month period. Hellobike earlier this month raised US$350 million from investors led by Ant Financial Services Group, an affiliate of Post owner Alibaba.
Once dubbed “Uber for bikes”, China’s bike-sharing industry is predicted to be worth 23.68 billion yuan (US$3.6 billion) by 2019, according to iResearch.
Beyond rental revenue and prospects for advertising, bike-sharing providers have helped promote mobile payments and gathered plenty of user data that can be analysed for consumer patterns – giving insight to marketers and businesses.
The long march of AI
The BAT companies have positioned themselves on the front lines of China’s AI plans. Baidu has sharpened its focus on leading the global market for autonomous driving technology, while Alibaba plans to invest US$15 billion over the next three years in AI and other cutting-edge technologies. Tencent has also launched an autonomous driving initiative, while quickly establishing AI research laboratories in China and the US.
Tencent enters elite club
In November, Shenzhen-based Tencent became the first Chinese technology company to top US$500 billion in market value, joining an elite club led by hi-tech industry stalwarts Apple, Alphabet, Facebook and Microsoft.
Shares of the Hong Kong-listed video games-to-social media conglomerate rose 4.12 per cent to close at HK$420 on November 20, which lifted its value to about US$511 billion.
Co-founded by chairman and chief executive Pony Ma Huateng in 1998, Tencent has received plenty of investor support, which resulted in its share price soaring as much as 132 per cent since the start of this year.
Live-streaming party over
This sector has seen explosive growth in the past two years, with the number of platforms growing to more than 100, while revenue surged to 20.8 billion yuan in 2016 from just 7.4 billion yuan in 2015, according to iResearch,
Chinese authorities have launched several campaigns to clean up the live-streaming industry, targeting “vulgarity”, “obscenity”, and “wrong life values”.
Targeting the iPhone X
But that has not stopped aggressive Chinese mobile phone brands from challenging Apple, with an eye on climbing up to its lofty perch in the world’s largest smartphone market.
Singles’ Day bonanza
“Nowadays in China, the first greeting isn’t whether you’ve eaten, but how many items do you have in your shopping cart,” said Joseph Tsai Chung-hsin, the executive vice-chairman of Alibaba.