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China’s technology profits began to decline in seven years

The profits made by China’s leading developers are about to drop every year in seven years because Beijing’s breakdown in the profit margin sends investors looking for other markets.

The first offer by Chinese stock brokerage firms raised about $ 14bn in 2021, according to Dealogic data, following last year’s total of $ 2.3bn as banks in Shanghai and Shenzhen enter the period which is usually relatively stable.

India’s technical lists, meanwhile, have risen $ 2.6bn this year, a jump of 550 percent compared to last year and a steady increase even before that. Paytm IPO, which is expected to bring a record $ 2.5bn this week after price hikes ended Friday.

The stark contrast between the two fundraisers reflects China’s initiative to promote the environment of home-based professionals.

But experts say India’s growing trade shows that the market was ripe, and a change in the rules allowing losing companies to register in Mumbai to encourage more startups to look at public markets.

The first test of the rules came in July with a list of catering companies Zomato, the world’s first major technical IPO. Shares at the start of the fundraiser have almost doubled from their value, making the company almost $ 12bn.

China’s leading hurricane has said lowered partial prices of its major technical groups and unstable depositors, including those looking for government-sponsored groups that are favored by the government for immediate enrollment.

Wong Kok Hoi, founder of APS Asset Management, said: “Global investors are beginning to understand that many Chinese internet companies will struggle to keep their profits from the past.”

“If big investors such as business investors who are responsible for investing online in Asia who are coming believe that the game is over in China, just look elsewhere, and India is the other way around.”

Bhavish Aggarwal, senior Ola, SoftBank-backed ride-sharing group, adauza Financial Times last month that Indian businesses had to use the Chinese crisis to attract global currency.

Researchers and analysts say that many items have become heavy on selling shares in China this year, among many others. forcible force of important schedules and inefficiencies of household stocks. China benchmark CSI 300 index of Shanghai- and Shenzhen-stocks stocks fell nearly 6 percent this year.

But a big problem has arisen Damage to Beijing in the technical sector, which has threatened many investors to abandon new lists.

The high-tech programs that have been released this year have failed to materialize, such as innovation Megvii, which registered the IPO in March at the Shanghai Star Market.

“A lot of oxygen was absorbed into the room by the storm,” said Thomas Gatley, a specialist at Gavekal Dragonomics in Beijing.

He also noted that China’s major technical groups, which are well-suited to local markets, including a CATL battery maker and low chipmaker pay, had already gone public, leaving only a few large commercials.

Additional reports of Benjamin Parkin in New Delhi

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