China’s internet sector is intensely competitive and may even be showing signs of overheating but the Hong Kong IPO of Tian Ge Interactive Holdings suggests there is huge demand for grassroots online social interaction.
Investors have been concerned because internet companies' share price performance has dropped an average 20% since March 7. The internet companies listed this year registered a larger decline of 26%, according to an April research by Credit Suisse.
“The price drop in March was a short-term correction,” said Ricky Lai, a Hong Kong-based TMT analyst with Guotai Junan Securities. “The sector has great growth potential,” he added.
Quite so. Tian...