China’s Virtual Reality Market Will Be Worth $8.5 Billion and Everyone Wants a Piece
Hip-hop dancers, military marchers and daredevils in winged suits are bringing China’s Internet titans into the world of virtual reality.These video stars have joined South Korean pop idols and animated fireflies as central players in a $1.1 billion global VR spending spree that’s being fueled by.
At least 200 startups are working in China’s virtual-reality industry, according to IQiyi.com Inc., a Baidu unit.
Baidu, Alibaba and Tencent—often referred to collectively as BAT—have a combined market capitalization larger than Israel’s gross domestic product, and they serve 688 million Internet users in China alone. China’s VR market is expected to reach 55 billion yuan in value by 2020 from 1.5 billion yuan last year, according to Guangzhou-based researcher iiMedia. Shares of Tencent rose 3.1 percent, the most in two months, in Hong Kong trading on Monday, while the U.S.-traded stock gained 4 percent. Baidu jumped as much as 4.2 percent in trading in New York, and Alibaba advanced 2.6 percent.
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