China media industry is in full swing.
The rapid economic development and per capita GDP growth have contributed to the vigorous development of the media industry with the growth rate of 11.9% in 2005, two percentage points higher than that of GDP.
China media industry has accelerated remarkably with an expected annual growth rate of more than 12% in 2006.
In terms of sub-industries, the Internet, digital television, new media and advertising all grow rapidly and those industries especially companies related to digital TV will be the core centre of investment in 2007.Industry capital will gradually penetrate into the capital market, which is one of important terminals for the rapidly growing media industrial capital.
Restricted by the harsh policies of the media industry listing, these industry capitals will enter the market basically through merger, acquisition and reorganization.
It is expected that in 2007 more companies will access to the media industry through reorganization, coupled with which merger and acquisition will yield many investment opportunities throughout the year of 2007 and become an important source of the excess investment profit.
The 2008 Beijing Olympics will have gradual impact on the company price growth.
As far as the investment strategy in 2007, the Olympics is expected to be a major impetus for the company price growth, mainly presenting following characteristics: Eye Effect of the Olympic Games will have a great role in promoting the advertising revenue; The Olympic Games will provide a good opportunity for cable operators to develop their digital televisions and other business.In summary, digital TV, merger, acquisition and reorganization, as well as the Olympics will be the core investment theme in the media industry in 2007.
Meanwhile, the media industry will maintain a rapid growth momentum.