[photopress:9You.jpg,full,alignright]A senior official at General Administration of Press and Publication said in Shanghai that up to five domestic game firms are expected to float shares in overseas stock markets within the next 12 months as the Chinese market rapidly grows.
Kou Xiaowei, vice director of GAPP, said, ‘Second-tier domestic game firms have popped up and their average income growth is even higher than the market leaders Shanda, NetEase and The9.’
He said the firms preparing to float overseas had annual profits of RMB500 million ($64.95 million) each although the companies were not named.
Industry insiders said the firms with plans for initial public offerings overseas include Shanghai-based Zhengtu, 9you and Beijing-based Kingsoft.
Kingsoft has merged its word-processing and anti-virus divisions and it has consolidated the game business for the coming IPO.
Chinadotcom also said recently in Shanghai it will invest $300 million to purchase game firms and float shares of its game business in 2008.
Chinese online game market revenue reached RMB7.6 billion in 2006, giving a 60% growth year on year, according to iResearch.
What might slow it down? Kou Xiaowei, vice director of GAPP, during a conference at China Digital Entertainment Expo & Conference (Chinajoy) 2007, said, ‘The anti-addiction system will launch next month on schedule and it will bring a positive influence to the market.’ It very much depends on the definition of the phrase ‘positive influence.’
Source: Shanghai Daily
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved