Caution urged on unicorn enthusiasm

Huge financing needs of firms could create liquidity pressure, say experts

Experts are advising caution when investing in newly listed unicorn companies - startups with $1 billion valuation - as some have seen their market capitalization shrink dramatically following their hyped IPOs.

Unicorns such as Giant Network Group Co Ltd, BGI Genomics Co Ltd, Focus Media Information Technology Co Ltd and 360 Security Technology Inc were pursued by investors just as they had gone public in the Chinese A-share market.