Perspectives

-In the next 1-2 decades, IT industries have great growing potentials with structural transformations in China.

-In the next 5-10 years, a group of industry giants (valued more than 50 or 100 billion) will emerge in domestic capital market.

-A new bull-run will be brought by the structural transformation. The valuation of the TMT industry reflects market expectations, implying that we are now at the starting point of this bull-run.

- Marked with the listing of Alibaba, B2C has reached its peak and starts stabilization. Though there are still many investment opportunities to be identified in B2C, but the next peak will appear in B2B industry and domestic capital market.

-As few IT enterprises can grow to be a 50-billion-market-value giant exclusively by endogenous growth, M&As will be the main growth strategy, and IT industry will be among the most active industries for M&As.

- Prerequisites for M&As have been met.

Mass new technologies are emerging in mobile internet, big data, cloud computing, AI, 3D, visual vision, IoT.

However, B2B companies are just beginning to adopt these new technologies.

Government policies are encouraging entrepreneurships;

People are enthusiastic for starting own business;

- In the light of the history of developed capital markets, mergers and acquisitions will lift the market in the early stage of bull runs, and vice versa, the bull market will promote M&As in the late stage. It is the best timing for M&A investment (especially in M&A funds with long-term value).