Tech of­fers great po­ten­tial

China Daily (Hong Kong) - - 2016-17: REVIEW & PREVIEW - -CAI XIAO

Liu Erhai, founder and man­ag­ing part­ner of Joy Cap­i­tal, talked to China Daily about the in­vest­ment op­por­tu­ni­ties for China’s tech­nol­ogy in­dus­try in 2017. Fol­low­ing are edited ex­cerpts from the in­ter­view.

What will be the great­est op­por­tu­nity in the tech­nol­ogy in­dus­try in 2017?

In 2017, ro­bot­ics, AR/VR, au­ton­o­mous cars, elec­tric ve­hi­cles and big data will con­tinue to be hot top­ics as they were in 2016. How­ever, AI re­mains the big­gest op­por­tu­nity. AI will per­me­ate al­most ev­ery fields of in­dus­try. Au­ton­o­mous cars and ro­bot­ics are both ex­am­ples of AI’s ap­pli­ca­tions. Be­sides its de­vel­op­ment as tech­nol­ogy, the break­through for AI will de­pend on whether it could be a proper ap­pli­ca­tion scene and this will have greater mean­ing.

What kind of tech­nol­ogy com­pany will have the great­est po­ten­tial?

There will be more in­vest­ment op­por­tu­ni­ties in the vir­tual per­sonal as­sis­tant and do­mes­tic ro­bot fields. Peo­ple in mod­ern so­ci­ety are quite busy and stressed. Dif­fer­ent kinds of do­mes­tic ro­bots will play more im­por­tant roles in peo­ple’s daily lives, such as se­cu­rity guards and per­sonal as­sis­tants. These are not only con­sumer prod­ucts, but also ser­vice providers. Be­sides com­put­ers, there will be new types of high in­tel­li­gence prod­ucts and ser­vices pro­vided at home.

What do you think of the exit of ven­ture cap­i­tal and pri­vate eq­uity in­vest­ment from the tech­nol­ogy in­dus­try?

IPOs in China’s A-share mar­ket have be­come

Could you fore­cast the merger and ac­qui­si­tion con­di­tions in the tech­nol­ogy in­dus­try next year?

M&As in the tech­nol­ogy field re­main ac­tive, which will fo­cus on core tech­nol­ogy, such as deep-learn­ing, au­ton­o­mous cars, VR/AR, and ro­bots. Fur­ther­more, more deals and big deals will ap­pear along with star­tups be­com­ing large-scale in­ter­net com­pa­nies. rel­a­tively smooth. Dur­ing the past few months, more IPOs have been ap­proved. We could have op­ti­mistic fore­cast for the next year.

There has been no news about a board for strate­gic emerg­ing in­dus­tries. No one has men­tioned the reg­is­tra­tion sys­tem thus far. There might not be much progress in this area in 2017 ei­ther.

There seems no hope to re­solve the is­sue of flu­id­ity of the NEEQ . With re­spect to the trans­fer of stock ex­changes, there may be at­tempts but not sub­stan­tial progress.

Re­cently, the US stock mar­ket has been highly ac­tive. New IPOs of China com­pa­nies in this mar­ket do not ap­pear ac­tive as in the past. Due to reg­u­la­tory is­sues, some fin­tech com­pa­nies are likely to go pub­lic in the US share mar­ket.

Liu Erhai

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