China software company files for IPO

Includes: NTES, SINA, SOHU
by: Ezra Marbach

According to an article in the China Daily, software firm Watchdata Technologies is planning to list on NASDAQ in the first half of 2005.

Watchdata is one of China's leading providers of operating system software with data security and encryption functions. The firm said it was the fifth largest mobile telecommunications microprocessor card vendor in China last year. Watchdata provides SIM cards and smart cards to China Mobile and China Unicom. Watchdata currently generates 80 per cent of its revenues in China.

With requirements by the domestic A-share market quite strict, Chinese firms are increasingly looking overseas hoping to replicate the success of Chinese Internet stars SINA, SOHU and NTES.