Investment Updates News
- VC investment continues to boom
Date: 20-Mar-2007 Sources: (Shenzhen Daily)
HIGH returns and preferential policy will help push China's venture capital (VC) investment to a new high.
The Zero2ipo Group, a leading VC service provider, predicted high growth in the country's VC investment, which will amount to US$2.5 billion this year.
Foreign VC funds will continue to take the dominant role in terms of both deal numbers and amounts invested, with information technology, new media, telecommunications and semiconductors remaining the appealing sectors, said Michael Kang, managing director of Zero2ipo.
The average return rate was more than 30 percent on China's VC market, with foreign venture capitalists gaining twice as much as their domestic counterparts.
To spur the boom of the VC industry, China has issued a new tax policy, writing off venture capitalists' tax equivalent to 70 percent of their investment.
The new policy applies to investors who have invested in unlisted small- and medium-sized high-tech companies for two years and above, according to the new policy.
China's VC investment rose 51.5 percent to US$1.78 billion last year, a record high, with 73.3 percent coming from foreign investors.
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