A drop in the hiring rate of firms in China

A drop in the hiring rate of firms in China

The big venture capital groups of China have been preparing for embracing the start-up scene of South-east Asia for a while. However, the giant hug is actually underway now, according to the report published in the Financial Times. $667m were poured in by the Chinese VC groups in the first six months of this year, up from $148m in the last year’s same period, which is over a four times increase. Such activity has the perspective to make the tech developments more powerful in a region of 650 million people.

Already the south-east Asian tech boom is in play, with around $3.4 billion in VC money flowing in during the first six months of the year, up over 300 percent from the last year’s same period. However, the entrance of the Chinese groups en masse changed the game.  A few of them have deep pockets & numerous have helped nurture the rise of China’s tech behemoths inclusive of Meituan-Dianping, Alibaba, Xiaomi, and others. They brought experience with them.

Outcome: Two main upshots are possible. First is an increase in activity across the region as Chinese money floods in, attracting more international investments & improving valuations. Take the example of Warburg Pincus, who announced last month a fund of $4.25bn dedicated to China, as well as, south-east Asia, while Sequoia also has eyes on the region. Second, even though south-east Asian “unicorns” are still rare, they may well boom.

According to this scoop by the Nikkei Asian Review, The Japan-South Korea tech row has started to claim victims. The tech giant, Samsung might have to pause the launch of its most advanced processor chip.

Technology scene of China is cooling significantly. Tech firms have decelerated their hiring considerable as compared with last year.