Technology, Media and Telecoms investments hit a record
Private equity and venture capital (PE/VC) investment deals in China's Technology, Media and Telecommunications sector have hit a record last year from 2018.
There were 3,954 deals completed in 2021, a 22-percent increase from a year ago, according to the Money Tree Report published by PwC.
Total investment in TMT surged 56 percent to US$76 billion and capital investment continued to target expansion.
Technology innovation enterprises gained much attention since the launch of the STAR board, a Nasdaq-like bourse for startups focusing on scientific and technological innovation.
Internet companies were less attractive for investors after tougher regulations and data privacy laws were implemented last year.
There were a total of 137 mega-round investments with financing size of over US$100 million, and those from semiconductors and IT services made up the majority of deals.
Active capital market and equity trading in the second half pushed up the number of exit deals to 426 last year, including equity transfer deals and initial public offerings, and the report expects more local startup firms would consider listing in the home market.
A-shares are still the preferred exit channel for domestic companies and Hong Kong remains an attractive destination for home-coming overseas-listed Internet and technology firms.
"With the gradual improvement of the registration scheme in the domestic capital market and the launch of the Beijing Stock Exchange,the TMT sector will continue to go with the picking up of digital infrastructure investment," said PwC China TMT Industry Leader Gao Jianbin.
