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The ICT Landscape in the PRC

China’s growth story, for ICT companies specifically, has been astonishing, says the International Finance Corporation. China, often referred to as the factory of the world has traditionally had a strong manufacturing base, including a core focus on the electronics industry. In addition, in the past 10 years, we have seen an explosion of the mobile phone population to over 300 million subscribers, larger than any other country in the world. Further, the country’s total number of Internet users has surpassed 90 million subscribers.

Historically, sectors such as electronics manufacturing and mobile communications applications have enjoyed the benefit of growth, while we can already see new nascent sectors come up including media driven business, broadband applications and cutting-edge IC design houses.

While much of the growth in the ICT sector has been funded by foreign investments, mainly through the private and public equity markets, it is anticipated that many sectors require substantial and ongoing funding. It is anticipated that such funding by international investors will continue to outpace domestic funding sources.

The study represents an important tool and roadmap for private investors in supporting the ICT industry in China. Another key consideration is IFC’s role in mobilizing funds by working with domestic and international financial and strategic partners.

Click here to view the full study (pdf 2046kb)

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The mission of IFC, the private sector arm of the World Bank Group, is to promote sustainable private sector investment in emerging markets, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in developing countries, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications. For further information please visit www.ifc.org.

The report is sponsored and funded by the Swedish International Development Corporation Agency (SIDA), to whom IFC would like to express its sincerest appreciation.