TMT investments surge in second half of 2019

Private equity and venture capital investments in the telecommunications, media and technology (TMT) industry jumped in the second half of 2019, adding 10 percent to 1,809 deals from the first half. 

The industry also saw a steady increase in investment value, with a 39 percent climb from six months earlier to a total of US$20.66 billion, according to the MoneyTree Report released on Friday by PwC. 

The number of TMT investment deals accounts for nearly half of all PE/VC deals over the past two years, a testament to the industry's long-term appeal for investors.

“The private equity market saw a recovery in the second half of 2019 thanks to easing Sino-US trade frictions and rising momentum of the A-share market," said PwC China TMT Leader and Private Equity Group Central China Leader Gao Jianbin. 

Investment value for the Internet and mobile Internet industry was the highest among all sub-sectors at US$10.9 billion, recording a 40 percent jump from the first half.

The number of IPOs in the second half hit its highest level in five years, at 65 cases, a 160 percent jump from the first half. 

"In the short term, as the COVID-19 outbreak causes inevitable challenges to overall economic performance, private equity market activities have been restrained as well," said PwC China Assurance Markets Leader and Private Equity Group Southern China Leader Vincent Cheuk. 

As a result of the outbreak, Internet service companies in areas like online education, telecommuting and cloud services which have seen high demand will still be sought after by investors, he noted.