HS investor conferenceChina attracts $3.18 billion in venture capital in 2007
In first eleven months of 2007, China has attracted $3.18 billion in venture capital, up 78.9 percent from 2006; 428 contracts were signed
China has attracted $3.18 billion in venture capital by the end of November, up 78.9 percent from the whole year level of 2006, according to a report released Friday by Honk Kong-based Zero2IPO, an industry research institution. Altogether 428 contracts were signed by the end of November, 104 more than the twelve months’ total in 2006. Chinese-funded institutions were active in fundraising and investment, but foreign-funded institutions still held the dominate share, occupying 79.5 percent of the total volume of venture investment, said the report. Beijing ranked first among Chinese cities with $1.007 billion flowing into 127 deals, followed by Shanghai, with 94 deals.
The report cited China as one of the most dynamic Asian venture capital markets. “The country is preparing for setting up of a growth enterprises tock market similar to the NASDAQ to help start-up companies, which boosts robust venture capital investment,” said Dr. Ou Minggang, deputy chief editor of the Chinese Banker magazine. Ou believed that venture capital investment is conducive to long-term economic development and restructuring, as more market mechanisms could be employed to fill badly needed funds for some start-ups, especially those in high-tech, energy-saving and environmental protection industries.
