Monday, July 02, 2018

An emerging China tech IPO bubble? - Paul Gillis

Paul Gillis
China tech companies feel the pressure from their investors to join the emerging IPO wave, and that might not be a good development, says Paul Gillis, Beida accounting professor, at Nextunicorn.ventures.

Next Unicorn Ventures:
Hurun Research Institute reports that 151 companies in China have attained unicorn status by the end of the first quarter, with half of these unicorns incubated or backed by industry titans such as Alibaba and Tencent Holdings. Their combined valuations exceeded 4 trillion yuan (about US$630 billion). 
Moreover, according to a professor of accounting at Peking University Paul Gillis, there’s a fear of missing out and Chinese tech companies might receive pressure from investors to join in and join big. He added that Meituan-Dianping’s valuation target of US$60 billion is hard to understand, given that the company has revealed a steep loss of US$2.9 billion last year from share-based compensation.
More at Next Unicorn Ventures.

Paul Gillis is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts in managing your China risk at the China Speakers Bureau? Do check out this list.
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