Beijing tops the list

The report revealed that in 2006, the Chinese venture capital market once again set a record: In the first 11 months, total investment reached $1.691 billion, an amazing 57.5 percent increase compared to the previous year. Start-up companies and companies in developmental stages enjoyed an equal share of investment, averaging invested capital of $600 million. This indicates that both Chinese and foreign venture capitalists continued to have strong faith in the Chinese market. The widely discussed Provisions for Foreign Investors to Merge and Acquire Domestic Enterprises, coming into effect in September 2006 and putting forward limitations on foreign investors' takeover of Chinese enterprises, seemed to have little negative impact on the Chinese venture capital market.

Beijing took first place in both investment case and amount, with Shanghai taking second. Compared with 2005, there was a greater concentration of projects in certain areas in 2006. In Beijing there were 108 investment cases involving capital of $730 million, far more than the $374 million invested in the 70 cases of 2005. Shanghai reflected a similar tendency with 44 cases involving $162 million in 2005, which in 2006 jumped to 81 cases with a total of $347 million. Investments in these two cities accounted for two thirds of the total venture capital market value.

(Xinhua Finance)

DISCLAIMER: The information contained herein is based on sources we believe to be reliable, but is provided for informational purposes only, and no representation is made that it is accurate or complete. This briefing should not be construed as legal, tax, investment, financial or other advice, and is not a recommendation, offer or solicitation to buy or sell any securities hatsoever.