Singaporean Government Invests in Chinese Gaming Community YY
Chinese gaming community YY has been having a good time since it debuted on the market (NASDAQ:YY) a couple weeks ago. It’s up over $13 a share now, and apparently someone in Singapore saw this coming, because the latest SEC filings reveal that the Government of Singapore Investment Corp (which is exactly what it sounds like it is) has already invested in YY to the tune of 500,000 American depository shares (ADS).
That sounds like a lot, but actually with nearly 8 million shares available publicly, it amounts to 6.4% of the company. Not exactly a controlling share, but not exactly chump change either. And since YY’s stock has been rising pretty steadily since the IPO, the Singaporean government has probably already made quite a bit of money and will be hoping the value of its shares continues to rise.
The Government of Singapore Investment Corp (GIC) was established explicitly to invest in overseas markets, so this investment shouldn’t be a huge surprise, but it’s interesting that the GIC is so confident in YY’s long-term viability despite a number of examples of other Chinese tech stocks that started strong but eventually dropped significantly (like Youku) and Chinese gaming stocks that have generally underperformed (like The9 and Shanda). It’s so far so good for YY — and thus for the GIC — here’s hoping the company is able to maintain its thus far strong growth.
[via Sina Tech]