Dahua Denies Alibaba Investment Rumor

September 16, 2020 2:11 pm

Beijing (PingWest)- Dahua, China’s second-largest surveillance equipment maker, quashed a rumor saying that Alibaba and China Mobile Communication are planning to invest CNY3 billion via a private share placement in upcoming weeks.

In an announcement, Megvii dismissed speculation about the firm’s intention to receive investment from Alibaba and China Mobile  

“The investment rumors are unrealistic,” a spokesperson of Megvii said in an announcement on Wednesday, but declined to give further details.

At the time of publication, the share of Dahua drop more than 6% right after the company released an announcement to deny the rumor.

The U.S government has put Dahua on a trade blacklist that limit the company to buy U.S technology without official approval.

Citing a source who familiar with the matter, Reuters also reported that China Mobile is in talk to invest CNY40 billion in Dahua under the three-year business.

Explaining the rationale behind the decision making, Reuters reported that the investment would allow China Mobile to use Dahua’s big data and cloud computing service, video surveillance equipment and Internet of Things technology.

The deals come at the time when government promote the smart city initiative, under which the Chinese government plans to build over 500 smart cities featuring the world’s most sophisticated surveillance technology networks, with millions of cameras in public places and increased use of techniques such as facial recognition to manage issues as varied as traffic and public health.

In April, Amazon was reportedly to sign USD10 million deal for 1,500 body temperature sensing cameras with Dahua.