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 a high growth in the
country's VC investment, which will amount to 2.5 billion U.S. dollars this
year.
Foreign VC funds will continue to take the dominant role in terms
of both deal number and amount invested, with information technology, new media,
telecommunication and semiconductor 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, while foreign venture capitalists
gaining twice as much as their domestic counterparts.
To spur the
booming of VC industry, China has issued a new tax policy, writing off venture
capitalists' tax equivalent to 70 percent of their investment.
The new
policy applied 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 1.78 billion U.S.
dollars last year, a record high, with 73.3 percent coming from foreign
investors.
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