Facebook Inc (FB) Could Be Heading to China in 2018

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Facebook Inc (NASDAQ:FB) could be returning to China as soon as 2018.

Facebook Inc (FB)

The social media giant has been attempting to bring back its services to the Asian nation’s citizens, but so far it has been unsuccessful. However, Facebook will attempt a comeback in the Chinese market that could boost earnings as soon as next year.

Mizuho Securities analyst James Lee reportedly met with multiple leaders in the industry in his last trip to the country. His contacts revealed that Facebook’s return to China will happen sooner rather than later, despite the nation’s highly regulated Internet.

Facebook has also been hiring former Chinese government officials to promote its cause, plus the nation’s decision to allow Airbnb to operate in its land is another sign of what could come.

“This approach appears to be aligned with Chinese government’s policy to globalize local companies and could help pave the way to get the ICP license,” Lee said. “If approved, we believe FB will likely operate an Instagram-like app, for photo & video sharing or VR-gaming platform through Oculus.”

Another reason why the nation could embrace Facebook’s re-entry is the fact that the company has been helping to sell Chinese ads overseas, and its mission “appears to be aligned with Chinese government’s policy to globalize local companies.”

FB shares grew 1% Tuesday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/09/facebook-inc-fb-china/.

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