Tencent and NetEase will stand out in the global metaverse race, because of the early investment from large numbers of users in the associated infrastructure for businesses in transforming the web into a three-dimensional online world .
The South China Morning Post cited the next-generation internet report published by Credit Suisse on February 17 as saying that two of China’s top internet and gaming companies are on the list of 35 global stock picks identified in the metaverse . . According to the report, there is now a relatively new frontier for the web, and the metaverse ecosystem is made up of five components, including infrastructure, hardware, content, platforms, and payment mechanisms.
While most Chinese tech companies are still trying to catch up with US tech firms in the metaverse, Tencent and NetEase have made some headway in virtual events and activities. NetEase has organized concerts and conferences based on holographic representation on the virtual event platform Yaotai. Tencent Music also held China’s first virtual music festival “Tmeland”, where participants can interact with each other through avatars.
“Metaverse is currently still in its infancy in China due to tight regulation of cryptocurrency exchanges,” wrote Credit Suisse analysts Kenneth Fong and Ivy Ji in the report.
The Beijing government’s outright ban on cryptocurrency trading and the cautious stance of regulators on non-fungible tokens (NFTs) also mean that some form of development The metaverse is definitely not going to be successful in China.
However, Chinese tech companies like Tencent and NetEase are investing more and more in the metaverse game. Tencent published LuoBuLeSi, the Chinese version of Roblox, an online gaming platform that allows users to use virtual avatars and play games built by other users. NetEase, China’s second-largest online game publisher after Tencent, also invests heavily in the metaverse social network IMVU and some games like Minecraft. China is currently the largest online game market in the world with more than 600 million players.
The internet platform’s vast social media user base can help Tencent, NetEase and other tech firms tap into more opportunities in the metaverse. The average monthly user of Tencent’s Weixin and WeChat social media super apps reached 1.26 billion as of September 2021. This will open up virtual branding and marketing campaigns for Tencent through the metaverse, according to Credit Suisse analyst Soyun Shin.