China has attracted 3.18 billion U.S. dollars venture capital by
the end of this November, up 78.9 percent from the whole year level
of 2006, according to a report released Friday by Zero2IPO
corporation, a leading domestic industry research institution.
Altogether 428 contracts were signed by the end of November, 104
more than the 12 months' total in 2006, said the report.
Venture capitalism, also known as risk capital, refers to money
invested in start-up firms and small businesses that have both
growth potential and the possibility of loss.
Chinese-funded institutions were active in fund raising and
investment, yet 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
U.S. dollars flowing into 127 cases, followed by Shanghai, with 94
deals clinched involving 900 million U.S. dollars, according to the
report.
The report cited China as one of the most dynamic Asian venture
capital markets.
"The country is preparing for setting up of a growth enterprise
stock market similar to the NASDAQ to help start-up companies,
which boosts robust venture capital investment," Dr. Ou Minggang,
Deputy Chief Editor of the Chinese Banker magazine, told
Xinhua.
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.
(Xinhua News Agency December 10, 2007)
