Published By : 09 Sep 2015 | Published By : QYRESEARCH
China’s telecommunication, media, and technology industry has always been in the news for its growth and developments. Recently telecommunication and wireless, technology, and media industry IPOs of China reached a new high in the first half of 2015. As per the report from PricewaterhouseCoopers, China’s IPOs of the telecommunication, media, and technology industry, collectively amounted to a total of 22.1 billion yuan. Due to fluctuations in the capital market, these China IPOs are expected to face certain challenges, which will slow down their growth momentum.
42 IPOs belonging to China industries such as telecommunication, media, and technology, experienced a transparent and streamlined listing procedure, which made them more attractive. According to Amanda Zhang, the leader of Northern China technology sector with PwC China, said that the momentum of growth of these 42 IPOs will slow down to cope up with the recent fluctuations in the capital market. Vincent Cheuk, the market leader of the entrepreneur of Beijing, said that the slowdown of the IPOs due to market fluctuations will create many opportunities for the private equity companies, sovereign wealth funds, and hedge funds. This is because the demand of financing of the enterprise has always been in a strong position.
Out of the 42 IPOs of Chinese telecommunication, media, and technology industry, 30 IPOs were made on the small and medium size enterprise board, and ChiNext board of Shenzhen, nine were made on the main board of Shanghai, and three were undertaken externally. According to the report, the ration of average price earning of Chinese A-share telecommunication, technology, and media was as high as 74 till August 31, compared to the average price earnings in June 30 that was 115.
Irrespective of the slowdown in growth due to capital market fluctuations, the Chinese IPOs are expected to measure significant growth in coming few years due to introduction of new registration system, and continuation of the multi-level reform of the capital market.