Technology firms, those ground-breaking companies with research teams hard at work building moats, are more highly prized than media counterparts that merely provide content. In the S&P 500, for example, tech firms trade as high as 30 times earnings, with software players leading the field—a handy premium over media companies at 17.5 times. China wants tech companies on its stock exchanges and is prepared to roll out the red carpet to make that happen, including possibly introducing Chinese depositary receipts. China is now fast-tracking the IPO process for technology companies and easing profitability requirements. But here’s the rub: The innovative companies Beijing wants must operate in fields of importance to national security, such as big data, cloud computing and artificial intelligence.
Source: Mint April 16, 2018 15:00 UTC