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Hot Chinese online game market not looking so hot
Chinajoy expo: Investors hold back their bets on Chinese online games
Online gaming companies in China raised a meager total of US$25 million in new funds during the second quarter of 2012 for a steep slide from US$86 million in the same period of last year as investors, including venture capital firms, have turned cooler.
Companies that had boasted about launching initial public offerings several months earlier generally quieted down at the Chinajoy 2012, the international online games exposition that recently concluded in Shanghai.
Investors in the online gaming industry have become more cautious and believe the current time is not right for IPOs, reported the 21st Century Business Herald in Guangzhou. One investor said his company has started gradually pulling out its stakes from many gaming companies.
Venture capital firms always want to cash in for profit-taking when IPOs are offered. But many firms are now adopting a new approach: suggesting gaming companies in which they have already hold stakes to make investments in new gaming firms instead of pouring in fresh investment from their own pockets.
An executive of an online gaming firm said that companies like to talk a lot about plans to list on the stock exchange so that they can attract greater attention from venture capital firms and at the same time boost the morale of their staff. At present, about 85% of such companies have put IPO ambitions on hold, mainly because of the bad market conditions and decreased interest from investors.
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120802000074&cid=1202
Chinajoy expo: Investors hold back their bets on Chinese online games
Online gaming companies in China raised a meager total of US$25 million in new funds during the second quarter of 2012 for a steep slide from US$86 million in the same period of last year as investors, including venture capital firms, have turned cooler.
Companies that had boasted about launching initial public offerings several months earlier generally quieted down at the Chinajoy 2012, the international online games exposition that recently concluded in Shanghai.
Investors in the online gaming industry have become more cautious and believe the current time is not right for IPOs, reported the 21st Century Business Herald in Guangzhou. One investor said his company has started gradually pulling out its stakes from many gaming companies.
Venture capital firms always want to cash in for profit-taking when IPOs are offered. But many firms are now adopting a new approach: suggesting gaming companies in which they have already hold stakes to make investments in new gaming firms instead of pouring in fresh investment from their own pockets.
An executive of an online gaming firm said that companies like to talk a lot about plans to list on the stock exchange so that they can attract greater attention from venture capital firms and at the same time boost the morale of their staff. At present, about 85% of such companies have put IPO ambitions on hold, mainly because of the bad market conditions and decreased interest from investors.
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120802000074&cid=1202