Investing in Chinese tech stocks has been difficult and dangerous this year because of political intervention. But for nearly a decade before, the same stocks delivered strong, predictable returns. A fresh batch of local tech companies could soon recreate the success of China’s first generation of listed tech giants.
China aims to triple the size of its big data and artificial intelligence industries to ￥3tn ($471bn) of annual revenues in the next four years. It plans to build huge new businesses and a data exchange. The initiative will be a windfall for local companies.
Most specialised Chinese AI and big data companies are currently private. Expect initial public offerings to add to the tally of quoted businesses, which include Zhongchang Big Data, iFlytek and Cambricon. Shares have languished so far this year. Cybersecurity companies such as Neusoft, Sangfor Technologies and Bluedon Information have attracted little investor interest.