Fascinating to see how different markets are and evolve. Virtual Data Room usage is finally taking off in Greater China. However, the adoption curve is very different than in other markets.
In most markets, data room adoption has been started by usage in M&A transaction. Typically multiregion or multi-bidder. In each region, once a the professionals in a market start adopting the data room concept, usage trickles down (or up) to other uses, such as local M&A transactions, joint venture, board rooms, and IPOs.
Our experience in the Chinese market is different. Although there have been a number of large cross border transaction using data rooms, the level of adoption until very recently has been lower than in other markets.... Until very recently.....
IPOs are leading the adoption of virtual data rooms. As Mainland China corporations list in Hong Kong and abroad, they find the use of a virtual data room very instrumental to run an effective process. Once they have been successful using the data room in an IPO, companies are much more open and think of other potential uses as M&A, joint ventures, etc.