Dynamic capabilities are arguably of more value in the internationalization process, particularly of multinationalcompanies (MNCs) that operate in highly dynamic international markets. Yet there is a scarcity of research onthe nature of dynamic capabilities in such highly relevant contexts. This exploratory study presents observationsof dynamic capabilities of MNCs operating in ten tightly-defined high-velocity industries of China that shed lighton the nature of the concept. Thefindings suggest that (1) dynamic capabilities of MNCs in high-velocity marketsare analytic, strategically planned high-frequency processes and routines, (2) they are highly complicated, and(3) they rely extensively on combined knowledge derived from global and local knowledge. They are likelyinfluenced by diverse sources of environmental velocity and the degree of the MNC's ownership advantages. Thecomplexity and sophistication observed have led us to propose a way to conceptualize dynamic capabilities ofMNCs in high-velocity markets.