New investment opportunities in shape as Shanghai explores further into TMT industry

Shanghai's pledge to nurture and incorporate the metaverse into the transformation of its life, economy and digital space and pour further investment into the artificial intelligence sector could mean new investment potential, according to industry experts.

Shanghai has the second highest number of investment deals in the telecommunications, media and technology (TMT) industry with 256 cases disclosed in the first half and investment value of US$3.59 billion, following a total of 335 ones in Beijing.

The total number of private investment deals in public equity in the TMT industry reached 77 in the first half this year in China, the highest level in three years with a total value of US$2.73 billion, according to the MoneyTree Report released by PwC on Wednesday.

Large investments were mainly concentrated in the semiconductor, IT services and hardware segments, as well as in the communications industry.

Gao Jianbin, PwC's China TMT Industry Managing Partner, said that further initial public offering registration reform would make domestic listings more attractive for startup companies.

Private equity and venture capital investments in the TMT industry was disrupted in the first half by market uncertainty and geopolitical tensions.

The total number of TMT investments in the first half of the year was 1,655, and the investment amount in TMT reached US$21.747 billion.

Domestic listings remain the preferred choice for Chinese TMT companies driven by the domestic science and technology innovation board and the Growth Enterprise Market with a total of 140 investment exits in the first six months.