China strives to reform the technology industry

Observers say that this is the strongest reform trend of China’s technology industry according to the government’s antitrust policy, as well as creating a favorable environment for startup technology ideas.

E-commerce company Jing Dong JD.com is planning to separate the real estate units (JD Property) and industrials (JD Industrials) into 2 companies to list on the Hong Kong Stock Exchange (China).

In the dossier submitted to the authorities, JD Company will hold more than 50% of the shares of the two subsidiaries. JD is working to complete the filings for an initial public offering of shares soon, with the goal of raising about $1 billion each. JD Industrials has annual sales of 14.1 billion yuan, about 2.05 billion USD; JD Property 2.3 billion yuan, more than 330 million USD.

Experts say that the trend of separation will continue to be stronger because there are many large-scale technology corporations in China. After a period of tightening control over Chinese technology groups to fight monopoly, the trend of splitting into small companies is considered an open direction for the development of private technology enterprises. The Hong Kong (China) stock market reacted positively to the strong rise of technology stocks.

According to experts, this will help companies that specialize in a field to grow stronger, go to the stock exchange to raise capital more easily, and have less trouble related to national security. In addition, China also aims to more strongly mobilize private economic sectors to realize the goal of strongly developing Chinese technology in strategic competition.