Bright prospects seen for China's high-tech sector
By Zhu Shenshen |
March 30, 2010, Tuesday
|
Print Edition
Print Edition
LISTED high-tech firms have surged by up to 80 percent on the domestic stock market this year while the key Shanghai and Shenzhen indexes shrank on weak performances in banks, property firms and oil companies.
Instead mobile content providers, chip assembly and test companies, radio connection research firms, interactive and high-definition TV makers, service providers and vendors of e-book readers were stars of the stock market.
The technology companies have been benefiting from national policies, including "three network integration" among mobile, TV and Internet networks as well as an improved market environment created by the completion of 3G networks and evolving display technologies.
Analysts see bright prospects for these firms.
"A high-growth industry always seems to appear after each financial crisis to lead the rebound in the whole economy. Now it's a technology wave in China," said Orient Securities.
The new wave is supported by both national policies and industry development, the brokerage said, adding that it has been a decade since the last technology wave, and now this latest wave completes the circle.
"There's no doubt about it," said Orient Securities. "The new technology sector is hot. Development, new products and an eager consuming public have all converged to produce these stunning returns on investment."
China launched a Nasdaq-style board, ChiNext, last year. China is also considering new rules that would allow overseas-listed firms to return to the domestic capital market, which has been welcomed by China Mobile.
The domestic market certainly offers dazzling prospects as the performance of technology shares this year amply demonstrated.
Previously, China's most successful IT firms, such as Baidu and China Mobile, listed in Hong Kong or the United States, denying domestic investors the chance to share in the profits of their business development.
Beijing Ultrapower Software Co Ltd, listed on ChiNext, provides a platform for China Mobile's instant message Fetion service. Its shares jumped 83 percent this year to close at 193 yuan (US$28) yesterday, the highest of all domestically listed firms.
Hanwang Technology Co, a Beijing-based e-book reader provider, gained 30 percent in about 20 trading days since it listed on the Shenzhen main board on March 3, closing at 107 yuan yesterday. Talkweb Information System Co, which designs and distributes mobile phone-based cartoons, rose 5.1 percent to close at 42 yuan.
By comparison, the Shanghai Composite Index has fallen 4.7 percent since the start of the year, and Shenzhen's main stock index has tumbled 8.6 percent.
Instead mobile content providers, chip assembly and test companies, radio connection research firms, interactive and high-definition TV makers, service providers and vendors of e-book readers were stars of the stock market.
The technology companies have been benefiting from national policies, including "three network integration" among mobile, TV and Internet networks as well as an improved market environment created by the completion of 3G networks and evolving display technologies.
Analysts see bright prospects for these firms.
"A high-growth industry always seems to appear after each financial crisis to lead the rebound in the whole economy. Now it's a technology wave in China," said Orient Securities.
The new wave is supported by both national policies and industry development, the brokerage said, adding that it has been a decade since the last technology wave, and now this latest wave completes the circle.
"There's no doubt about it," said Orient Securities. "The new technology sector is hot. Development, new products and an eager consuming public have all converged to produce these stunning returns on investment."
China launched a Nasdaq-style board, ChiNext, last year. China is also considering new rules that would allow overseas-listed firms to return to the domestic capital market, which has been welcomed by China Mobile.
The domestic market certainly offers dazzling prospects as the performance of technology shares this year amply demonstrated.
Previously, China's most successful IT firms, such as Baidu and China Mobile, listed in Hong Kong or the United States, denying domestic investors the chance to share in the profits of their business development.
Beijing Ultrapower Software Co Ltd, listed on ChiNext, provides a platform for China Mobile's instant message Fetion service. Its shares jumped 83 percent this year to close at 193 yuan (US$28) yesterday, the highest of all domestically listed firms.
Hanwang Technology Co, a Beijing-based e-book reader provider, gained 30 percent in about 20 trading days since it listed on the Shenzhen main board on March 3, closing at 107 yuan yesterday. Talkweb Information System Co, which designs and distributes mobile phone-based cartoons, rose 5.1 percent to close at 42 yuan.
By comparison, the Shanghai Composite Index has fallen 4.7 percent since the start of the year, and Shenzhen's main stock index has tumbled 8.6 percent.
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