Find out what moves China tech with us. We round up what you need to know about the local venture scene every Thursday morning at 8:00 a.m. (GMT +8), covering major investment stories, MNC partnerships, noteworthy startups, industries with the most investments for the week, and more.
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MNCs in China
Shanghai’s influx of foreign investment
On July 28, a signing ceremony for 60 foreign-funded projects took place in Shanghai, amounting to a total investment of USD 5.85 billion. These projects involve a wide spectrum of industries, spanning biomedicine, integrated circuits, artificial intelligence, automobiles, high-end equipment, advanced materials, and fashionable consumer goods.
During the event, top executives from foreign companies such as the Greater China managing director of Swarovski and the VP and CFO of Porsche China showcased the importance of the Chinese market to their companies. Swarovski’s business in China has become the largest and most important source of revenue for the group. Additionally, in 2020, Porsche delivered 88,968 new cars in China, up 3% year-on-year, accounting for 33% of Porsche’s global sales. China has been Porsche’s largest market since 2015.
In all, 24 of the signed projects netted more than USD 50 million in investment, and 14 firms are set to establish regional headquarters in Shanghai.
Going Public: IPOs
On July 29, Imeik submitted its prospectus to the Hong Kong Stock Exchange. Founded in 2004, the company’s main business is the R&D and production of soft tissue repair materials. Imeik sells materials such as hyaluronic acid and botulinum toxin to cosmetic medical institutions that offer plastic surgery and other cosmetology services. In September 2020, Imeik completed an IPO in Shenzhen to join China’s A-share market. Following the completion of its Hong Kong IPO, Imeik will become the first cosmetic medicine company to be listed on both A-share and H-share markets.
After its IPO in Hong Kong, the company will use some of its newly raised capital to buy a 25.4% stake in South Korea’s Huons Bio to acquire rights to use Huons Bio’s patented botulinum toxin technology.
36Kr Global and KrASIA’s two-part special on Hefei, one of China’s fastest-growing cities
Shanghai, Beijing, Shenzhen, Guangzhou. These are the handful of cities that come to mind when most people think about China. Few people outside of China have heard about the capital of Anhui Province, the world’s epicenter of LCD screens, and one of China’s fastest-growing cities—Hefei.
This city has taken a unique approach to development, with its strategy resembling that of a venture capital playbook. Its risky moves have paid off. The city increased its GDP by over 2,600% in the past 20 years, and it has one of the most complete scientific research and production chains in China. Hefei is also where EV company Nio set up its China headquarters.
From a small town to an emerging first-tier city, read part 1 and part 2 of KrASIA’s two-part special on Hefei.