China's TMT (technology, media & telecommunications) industry and PE/VC (private equity/ venture capital) market were relatively active in 2021 due to normalized epidemic prevention and control, the recovering economy, and policies implemented for guiding PE/VC market, according to a report highlighting the investment of China's TMT industry released by PwC recently.
(Photo / Xinhua)
The report shows that the investment amount and volume of PE/VC in the TMT industry declined slightly in the first half of 2021, and rebounded significantly in the second half of the year.
In the first half of 2021, investments in the TMT industry totaled 1,792, down 13 percent on a 6-month basis; while in the second half of 2021, investments reached 2,162, up 21 percent on a 6-month basis.
According to the published investment statistics, investment of the TMT industry in the first half of 2021 was 33.48 billion USD, a decrease of 3 percent on a 6-month basis; investment in the second half of the year was 42.55 billion USD, an increase of 27 percent on a 6-month basis.
Driven by the market environment and the country's support for the TMT industry, especially for the technological innovation enterprises, TMT is still a relatively active and capital-friendly industry, said Jianbin Gao, PwC China TMT Industry Leader.
Reviewed by sectors, it saw increasing investment of the technology industry which tops in TMT industry. In the first half of 2021, the investment in this industry accounted for 59 percent of the total investment in the TMT industry, and this proportion increased to 71 percent in the second half. In detail, the semiconductor industry and IT service industry attracted the most investment.
As for future development of TMT industry, Zhang Yi, Partner at PwC China believes the industry is promising and capital will flow into sectors including semiconductors, 5G infrastructure, industrial Internet, AI and other industries.
Author: Will
Editor: Wing, Steven, Jerry
