State buys into Douyin, Kuaishou

State-owned media firms have bought stakes in social media app Douyin and its rival Kuaishou (1024).

Beijing Radio & Television Station bought a 1 percent stake in Beijing Kuaishou Technology on October 26, according to reports.

Beijing Huayi Huilong Network Technology holds a 99 percent stake in Kuaishou and though Beijing Radio & Television may not have any veto powers, it may exercise control in other ways, the report said.

Besides, WangTouZhongWen Beijing Technology has taken a 1 percent stake in Beijing-based Douyin Group in April last year. Douyin Group operates the popular short form video app, Douyin, and WangTouZhongWen is owned by three Chinese state entities.

In 2016, the Chinese government suggested that state-owned companies should take at least 1 percent of shares in non-state-owned media companies, with board seats and certain rights to review content.