Chinese startups will get thrown an M&A lifeline

Mobvista

14/12/2018 02:17

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Alec Macfarlane
    HONG KONG, Dec 14 (Reuters Breakingviews) - Regulatory
tightening and skittish investors mean many tech seedlings will
struggle to raise funds in 2019. With Tencent less active, it’s
a buyer’s market for the likes of Alibaba, SoftBank and Xiaomi.
Enterprise tech, AI and electric cars will make for vulnerable
targets.
    Full view will be published shortly.
    On Twitter https://twitter.com/AlecMac11
    
    CONTEXT NEWS
    - China’s largest listed technology stocks had lost almost
half a trillion dollars in value from the start of the year to
mid-November amid a broader economic slowdown, a series of
tit-for-tat trade tariffs imposed by the United States and
tighter regulation of social media, gaming and fintech sectors,
Reuters reported Nov. 13.
    - “Investments into the tech space have definitely cooled
down,” Zhang Chenhao, Shanghai-based Managing Partner at
technology-focused Prometheus Fund, told Reuters. “I think this
year is the first time over the last 30 years when greed yields
to the fear.”
    - Smaller startups are also suffering as access to capital
becomes tougher, the report added.
    - For previous columns by the author, Reuters customers can
click on  MAC/ 
    - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: http://bit.ly/BVsubscribe

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Trade war and censors blow chill wind through China's giant tech
scene     urn:newsml:reuters.com:*:nL4N1XH1D4
BREAKINGVIEWS - Tencent’s big battle goes from fantasy to
reality     urn:newsml:reuters.com:*:nL3N1VM16U
BREAKINGVIEWS - Nio zooms from carmaker to tech star   
 urn:newsml:reuters.com:*:nL3N1W01HI
BREAKINGVIEWS - Asian IPO slump brings welcome valuation sanity 
   urn:newsml:reuters.com:*:nL4N1XR00E
Graphic: Acquisitions of Chinese technology companies by global
acquirers     https://tmsnrt.rs/2QlDm8r
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Editing by Rob Cox, Katrina Hamlin and Sharon Lam)
 ((alec.macfarlane@thomsonreuters.com; Reuters Messaging:
alec.macfarlane.thomsonreuters.com@reuters.net))