Investment firms on the lookout for potential companies with high stock value
Even with the reports on accounting scandals hitting U.S. listed Chinese stocks have not changed the relentless appetites of private equity and venture capital firms that are searching for internet stars and luxury e-commerce sectors.
The firms are betting on social, mobile and location based services that includes Digu.cn and UCWeb, since there is a boom of cheap tablets and smart phones happening in China. Firms are investing earlier just before pre revenue, they know there will be risks involved but firms just needed to be extra careful and act diligently.
Most of the firms that were caught in accounting scandals saw their stocks fall, and is causing anxiety among the Chinese firms listed in the United States. More and more firms are looking for hot start up companies especially those involved in manufacturing mobile phones since the use of mobile internet is on the rise.
In 2010 mobile internet users in china reached 300 million, meaning that almost 60 percent of internet uses are accessing the internet using mobile phones or tablets.