China News Service, September 25 (Reporter Jiang Yu) According to a report released by PricewaterhouseCoopers on the 25th, private equity and venture capital (PE/VC) in the first half of 2020 in China’s technology, media and communications (TMT) industry Investment has experienced a trend of first decline and then rebound.
In the first half of 2020, the number of investments in the TMT industry was only 1,187, a decrease of 34% from the second half of 2019 and a year-on-year decrease of 28%; according to the investment projects with disclosed investment amounts, the total investment amount was 13.967 billion US dollars, a 32% decrease from the previous month. A year-on-year decrease of 6%.
PricewaterhouseCoopers Global TMT Industry Lead Partner Zhou Weiran analyzed: “The investment volume and investment amount of the TMT industry have both declined in line with the market environment, and recovered in the second quarter. The state’s various support policies for the TMT industry and China’s capital market The depth and breadth of the reforms and the long-term impact of the new crown epidemic on the overall macro economy will have a major impact on whether the recovery trend in the second quarter can continue."
Among the four major sub-sectors of TMT in the first half of 2020, the technology industry has benefited from the encouragement and support of national policies for scientific and technological innovation in recent years, and has received the largest amount of investment. At the same time, the amount of investment has also exceeded the Internet and mobile Internet industries that have been ranked first in previous years. , Realizing the trend of high investment volume and amount.
In the first half of the year, the number of investments in the technology industry totaled 760, with a total investment of 7.919 billion U.S. dollars; there were 14 single investments exceeding 100 million U.S. dollars, accounting for 50% of the total investment in the TMT industry.
In the first half of the year, the number and total of investment in the Internet and mobile Internet industries hit a three-year low, with a total of 380 investments, with a total investment of US$4.792 billion, representing a decrease of 33% and 56% from the second half of 2019 respectively.
There were 19 investments in the communications industry, with a total investment of US$1.085 billion.
The entertainment and media industry has been most affected by the epidemic. Due to the inability to develop movies and production entertainment programs, the decline in advertising business demand, the cancellation of sports competitions and cultural activities, and other factors, the revenue of the traditional media industry has fallen sharply, with 28 investments. The total amount was US$1.72 million, which dropped 71% and 52% respectively from the previous month.
Yan Bin, a partner of PwC's Mainland China audit business, said: "As the epidemic eases, the government put forward the goal of building a data center for the first time in the first half of 2020. Coupled with the deepening of various policies for new infrastructure, a large amount of capital has entered the 5G infrastructure, Internet, artificial intelligence, industrial Internet and other fields. These fields will be investment hotspots for a period of time. The concept of new infrastructure, data center, etc. and the supporting implementation of related policies, plus the prosperity and development of the Science and Technology Innovation Board and the registration system of the ChiNext In the future, the performance of the technology, Internet, mobile Internet and communications industries in the TMT industry is worth looking forward to.” (End)