Unstoppable rise of Chinese unicorn

Updated 2017-07-26 09:46:19 Xinhua

Unicorns, previously known only to exist in myth or Silicon Valley, are quietly multiplying in China.

According to a report by China's Ministry of Science and Technology and the Great Wall Enterprise Institute (GEI), China was home to 131 unicorns at the end of last year, almost double the number one year before.

Unicorns are privately owned companies valued at over one billion U.S. dollars, established within the past decade.

Beijing, Shanghai, Shenzhen and Hangzhou are the unicorns' main breeding grounds, though 12 other cities have small populations. Beijing is home to almost half of the total.

The 131 have an average estimated value of 3.7 billion U.S. dollars and come from 18 industrial sectors. The combined value of the top seven "super unicorns" is more or less equal to the other 124 put together. Over one third of the companies were established after 2014.

E-commerce, Internet finance, intelligent hardware and transportation are the natural habitat of more than half of the unicorns.

Dozens of unicorns frolic in Beijing's Zhongguancun, where multinationals and more than 300 listed Chinese companies are always working on the incarnation of another. On Sunday, Zhongguancun Bank was born: its mission is supporting start-ups and innovation by financing small sci-tech firms.

The break up of large companies is an important source of unicorns. More than 30 of them have broken away from industrial giants such as Alibaba and Tencent. Fourteen on the list, with about 40 percent of the total estimated value, have connections to Alibaba. Tencent incubated 16 with about a quarter of the total value.

From a global point of view, big companies generate unicorns through splitting their business, investment and mergers, which is now the trend in China, said Wang Delu, president of GEI.

According to the report, the sharing, platform and intelligence sectors of the economy are the three areas where unicorns are most likely to flourish.

By exploring the value of idle resources, the sharing economy has established a new business model. The platform economy gathers service providers and seekers, pioneering a future commercial model. With major breakthroughs in big data, virtual reality and intelligent hardware, the intelligence economy is seen as the "next big thing."

"All three areas have a lot of unicorn firms, and more are on the way," the report concluded.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58January 16 2019 20:04:58

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16January 16 2019 20:04:58

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18January 16 2019 20:04:58

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords