(Yicai Global) July 17 -- The Shenzhen-Hong Kong Stock Connect and the Shanghai-Hong Kong Stock Connect mechanisms make listing in Hong Kong more attractive than floating in the US for Razer USA Ltd., as the firm plans to focus on expanding its presence in China and Asia, Min-Liang Tan, the gaming computer hardware developer's chief executive, told Yicai Global.

With ambitions to charge the Chinese and Asian markets, the San Francisco-based company submitted its application for listing to the Hong Kong Exchanges and Clearing Ltd.[HKG:0388] and disclosed its prospectus on June 29. Razer targeted a valuation of USD3 billion to USD5 billion (HKD23.4 billion to HKD39.0 billion), foreign media reported.

The next research and development focus of Razer, which started off making mice and keyboards, will be mobile terminals and the group hopes to lay a mobile game market foundation. "The development of China's mobile game market is even faster than in any other country," Tan said.

About 23 percent of Razer's earnings came from the Asia-Pacific region last year, among which China contributed 13 percent. E-sports fans in China typically buy Razer devices via e-commerce platforms like JD.com and Tmall.com as the company's market for software and services is mainly in other countries.

Razer has been optimistic about the mobile game industry since several years ago and has recently recruited talent accordingly, Tan said.

To accelerate its grip on the Chinese market and encourage localization, the firm will direct resources to China and employ more software engineers, Tan said. The group will consider cooperating with major Chinese technology enterprises. Razer studies markets using cloud-based big data, Tan said.

Big data indicated that European gamers make larger mouse movements than their Chinese counterparts. This information can help hardware makers improve product design.

Razer is optimistic about the game industry, which is worth as much as USD100 billion as well as movies and music, which is why it acquired THX and its high-end audio and visual equipment including its Slot Speaker technology, said Tan.

Entertainment will be an important investment target when artificial intelligence is popularized, Tan said. "Films are sound-integrated platforms, so why don't we play e-sports in cinemas?"

Hunting for new opportunities is the driving force for tech companies, Tan said. As an avid gamer, Tan has always looked for ways to innovate in the industry, but research and development is costly and can created losses.

Razer's peripheral gaming devices have a profit margin of about 35 percent, Tan said. The company's losses have mainly been attributed to its laptop business, which is set to become profitable soon. Razer will continue to grow its software and service operations, which have a gross margin of over 85 percent.