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Xi Jinping Speech Likely To Extend China’s Technology Exuberance For Many More Years

For the Chinese technology and venture capital community, Chinese President Xi Jinping’s speech opening the 19th congress of the Chinese communist party was everything it hoped for. The key words “artificial intelligence”, “big data” and “innovation” were highlighted and emphasized repeatedly in the otherwise laborious three-hour address.

IDG Capital Defends Chinese Luxury E-Commerce Firm Secoo As Company Share Price Halves Post-IPO

IDG Capital’s name appeared in a curious press release today. “Secoo: IDG Capital Will Continue to Support Undervalued Secoo After Restrictions Are Lifted,” it reads. Secoo Holding Ltd, a Chinese luxury e-commerce retailer that raised around US$140 million in a NASDAQ IPO last month, has seen its share price nearly halve during the past three weeks after shares began trading on September 22. The company’s ADR closed at US$6.97 apiece on October 12, compared to its IPO price of US$13 …

China’s Venture Capital Market Cools As Deal Volume And New Start-Ups Reach New Lows

Deal activity in China was strong in 2016. AI and sharing economy were the top two buzzwords in capital markets. How has the situation changed in 2017? The tech channel at Tencent News and startup database IT Juzi jointly released a report on the venture capital trend in the first half of 2017. China Tech Insights is authorized exclusively to release the English version of the report, and China Money Network is republishing the report via a partnership with China …

China’s $25 Billion Food Delivery Industry Adds To Environmental Nightmare

It’s Monday morning, and Ms. Li, a sanitation worker at a Shenzhen apartment building is busy emptying leftover food from delivery boxes and collecting the plastic containers. On this day, she finds about 200 pieces, which she’ll sell for just RMB3 to augment her RMB2000 monthly salary. Monday morning offers the best pickings as the garbage can is full of food delivery bags dumped over the weekend.

Why Has China’s GDP So Outpaced IRR?

It’s the paradox at the core of China investing: why has such a phenomenal economy proved such a disappointing investment destination for so many global institutional investors, PE firms and Fortune 500s.

China May Own More Artificial Intelligence Patents Than US By Year-End

China and the United States are both artificial intelligence superpowers. But China may soon be the clear leader, at least in terms of AI patents filed. The U.S. currently has more, with 35,508 AI patents, versus 34,345 for China. But as Chinese companies and scientists are filing AI patents at a faster pace, the nation is likely to hold more AI patents than the U.S. by year end, according to a report by Sequoia Capital China and Zhen Fund.

Mobike’s First Day Explains The Power Of Bike Sharing In China

Whenever I see a small company having a startling large impact on the world, I look for an engine. I look for something that is amplifying what a relatively small number of people are doing. For example, the engine that rocketed Facebook (and Wechat) upwards was the economics and psychology of social media (plus viral marketing). The engine that powered Macau to become five times Las Vegas in a few years was the psychology of gambling plus 1.4B Chinese consumers. …

Chinese Innovation QR Code Mobile Payment Wants To Conquer The World

China is going cashless, no doubt. Chinese consumers spent a total of US$5.5 trillion via mobile payment platforms last year, or simply put, it was about 50 times more than their American counterparts (around US$112 billion), according to data from Forrester Research and iResearch. The credit of the country’s multi-trillion dollar mobile payment market goes to China’s third-party QR code-scanning mobile payment platforms, led by WeChat Pay and Alipay. Statistics show that from 2013 to 2016, the number of transactions …

Ugly Fight Between Chinese Online Education Firms Enrages Investors

Two of China’s leading online education companies, backed by a who’s-who of top venture capital firms, are embroiled in an ugly public relations fight involving pornography, alleged hacking and threatened legal action. The episode has caused an outcry from investors and industry participants, with the latest being Baidu Inc., an investor and former parent of one company, releasing a statement with harsh words for all involved. The facts are still unclear, yet it seems certain that both firms are destined …

China To Challenge US Leadership In AI? Not So Fast

There have been a lot of discussions on China’s rising prowess in artificial intelligence, on how the Chinese are catching up or even surpassing the U.S. in leading the world’s most important future technology trend. The concerns are so real that the U.S. government is reportedly looking to strengthen scrutiny of Chinese investments in American AI companies.

My Visit To Mobike Headquarters And What I Learned From Founder Hu Weiwei

In late July, I did a tour of Mobike’s headquarters in Beijing – and I had a fascinating talk with founder Hu Weiwei and VP of International Expansion Chris Martin. It was a fantastic experience and I left with a much better appreciation of the rocket-ship ride the company has been on. I am writing up three (more serious) business articles on the bike-sharing business from this experience. But here is a summary of my trip – and then five …

What Does New Cybersecurity Law In China Mean For Companies?

A controversial new cybersecurity law came into force today in China. The law, with important changes to critical data processing and personal information collection, brings uncertainty to companies, especially those foreign entities operating in China, according to digital forensics firm KrolLDiscovery.

The Herd Of 102 Chinese Unicorns Reveal Three Waves Of Technology

Looking at China Money Network’s China Unicorn Ranking of 102 companies worth a combined US$435 billion, three waves of technology investment jump out. Financial technology is a past wave in terms of opportunity, artificial intelligence is a present wave, while education and healthcare are waves that are only now gaining strength.

Will Shared Phone Chargers Be The Next Big Thing In China?

It’s hard to predict which new products will take off and which will flop. The Segway was launched in 2001 to much media interest, but quickly became the subject of ridicule and fell into obscurity. Fifteen years later, the “hoverboard” – essentially a Segway without handlebars – somehow became one of the most sought-after Christmas gifts, with hundreds of factories in China churning out the two-wheeled trendsetter.

China Should Follow Saudi Arabia By Setting Up Joint Funds For US Infrastructure Investment

The Public Investment Fund (PIF) of Saudi Arabia teamed up with U.S. private equity giant Blackstone Group yesterday to launch a new investment vehicle dedicated to infrastructure development, primarily in the U.S. Anchored by a US$20 billion contribution by PIF, the two plan to raise another US$20 billion from other investors and leverage up their dry powder to US$100 billion.

China’s Outbound Investment To Enter “Ice Age” As Capital Control Continues

China’s outbound direct investment will enter an “ice age” in 2017, due to the country’s continued tight control over capital outflows. But in the long term, more Chinese companies will seek acquisitions overseas and the sector still has significant room for growth, says a report issued by Sino-Europe private equity firm A Capital.

China’s eSports Industry Revenue Reached $7B Last Year

China’s electronic sports (eSports), or competitive video games, industry generated RMB50.4 million (US$7 billion) in revenue in 2016, up 34.7% year-on-year, according to a report by China’s GPC, an industry group for game publishers.

Are China’s Sharing Start-Ups Playing With Fire Using Customers’ Money?

China’s mushrooming bike sharing companies have aggregated RMB6 billion (US$872 million) or more in user deposits, according to industry observers. These deposits, growing everyday and currently existing in a regulatory vacuum, may be partially used for high-yielding investments and in turn present massive financial risks to consumers.

Optimism For Chinese Economy As Trump Trade Continues To Fade

Optimism over the underlying momentum of the China economy in 2017 has continued to improve, following official figures showing that GDP output grew by 6.9% over the first quarter of 2017. This represents stronger growth than what was expected and does point towards the China economy making a turnaround after consecutive years of declining growth in the years beforehand.