British media: China's IT industry is welcoming the "oligarch era"

According to the British "Financial Times" website January 14th news, in the just-concluded 2014, Xiaomi company completed the latest round of financing, financing raised more than 1 billion US dollars, the company's valuation of more than 45 billion US dollars.

The public's impression of Xiaomi is mostly mobile phone manufacturers. This is true. However, Xiaomi is a super player in China's huge domestic market and a software development company. Xiaomi is ambitious to go to the world, bringing many challenges to the peers.

Ji Weidong, the founding partner of Hong Kong All-Star Investment Fund, participated in Xiaomi's latest financing and was old-fashioned with Lei Jun, chairman of Xiaomi Technology. He believes that Lei Jun does not intend to attract gold in software development. It is just a channel for acquiring customers, and integrating software. And internet service. Now a complete ecosystem has been formed, in which hundreds of companies will use the platform of Xiaomi.

On December 12, 2014, the China Banking Regulatory Commission said that the domestic Internet giant Tencent’s private bank, Shenzhen Qianhai Weizhong Bank, was officially opened for business. This is the first private bank in China. At the beginning of the new year, Premier Li Keqiang came to Weizhong Bank and witnessed the issuance of the first loan. This is enough to prove that the state supports these technology giants to play their powerful role.

Tencent has already pushed China Mobile's SMS business to a dead end, and now it has challenged the bank. It seems that the major domestic banks have not fulfilled the promise of “serving the people” and have not tasted the sweetness of customers and SMEs.

China's technology and Internet companies have come a long way to go. Today, their total market capitalization has exceeded 500 billion US dollars, 80% of which comes from China's "Internet Big Three" - Baidu, Alibaba and Tencent .

In 2014, Credit Suisse China's Internet Index rose by 20% (up 100% in 2013), while the “Big Three” rose by 31%. If it weren't for the three giants, China's overall index would fall by 5 percentage points. . In addition, according to the Credit Suisse report, the “Big Three” accounted for 90% of all mergers and acquisitions in this area, and these mergers and acquisitions became a game of “Monopoly”.

The Big Three did not spend much effort to stabilize the throne. From the "challenger" to the "overlord" is the matter of calcium carbide. Ji Xiangdong also said that the threshold for entry is getting higher and higher. Once you have 100 million users, it will have a huge impact on the Internet.

Indeed, when an investment company intends to cooperate with Alibaba, it will consider that although Alibaba now accounts for 70% of the e-commerce market, it is still a problem whether it can always be brilliant. The answer is that this worry seems to be superfluous. Investors said that Alibaba's influence and scale are not the only considerations.

Once the market is dominated by a few companies, unfair competition will occur, and companies with corporate connections will grow better and better, and for start-ups that don’t have such a corporate network, the road to success is full. Hardships. The giants will experience this process by consolidating their position: stock selection ability – corporate connections – is becoming more and more critical.

China does not have a “Silicon Valley” to gather many high-tech companies, but it provides a strong infrastructure for start-ups to ensure that they can absorb funds or effective advice from investors or these technology giants at every stage of development. They are leaders in the field, experienced and strategic.

In the next few months, a new round of technology companies will follow Alibaba's footsteps to the mass market. For example, this year's list may have a US group network, including the Alibaba, the US transatlantic. Support from companies such as Investment Group and Sequoia Capital provides entertainment, hotels and restaurants to 100 million users.

At this stage, there are many signs of bubbles in the market. The price level of the latest financing is really exciting, and there is little time to do detailed investigation before making investment decisions. It may be too early to say who is the boss of the Chinese Internet community, because sometimes a mouse may cause fatal damage to an elephant, so the boss in the industry may also be defeated by a fledgling pawn.

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