Across The BorderPokemon Go captures investors’ imaginations, but venture capitalists remain reluctant to play along

The recent runaway success of Pokemon Go, a game which lets users track down and catch virtual Pokemons in their vicinity, has given Chinese investors a real taste of the possible rewards from speculating in the world of augmented reality (AR).

AR products offer users real time display of real-world images, with computer-generated information and media.

Several Chinese AR-related shares have continued to rise by their daily 10 per cent limits in recent days, along with the increasing popularity of Pokemon Go in overseas markets, even though the first mass-adopted AR game is yet to be launched in China.

Hengxin Mobile Business and Ningbo GQY Video & Telecom JSC have surged about 40 per cent in the latest fortnight, while Alpha Group, and Meisheng Cultural & Creative have rallied 15 per cent in the same period. All four are listed in Shenzhen.

Lenovo Group was also heavily traded and led gains in Hong Kong shares on Wednesday, after mainland media reported it is developing a mobile game using AR technology.

Pan Ninghe, a research analyst at Chuan Cai Securities, said it’s “reasonable and understandable” that the popularity of Pokemon Go has pricked the interests of Chinese retail investors, because AR-related shares have been gaining among investors globally.