Capital Boom
The year 2007 has proved to be a milestone in the development of Greater China's venture capital and private equity, with both the amount of funds raised and invested capital reaching historic highs. The venture capital and private equity market saw an unprecedented boom, with total investment reaching US$3.25 billion and US$12.83 billion respectively in 2007. In the meantime, 58 new VC funds raised US$5.48 billion and 64 PE new funds raised US$35.58 billion. In addition, there were 94 VC/PE-backed IPOs and 30 M&A transactions. All the activity showed that China's venture capital and private equity industry continues to thrive.
We focus on the Greater China market. We have teams and offices in various cities in China. Investors new to Greater China often find it extremely difficult to start without the assistance of a local partner. We see knowledge of local markets and conditions and close relationship and network with local government authorities as essential to the successful establishment of a foreign investment entity in China, where business potentials are vast.
Industrialization, urbanization and globalization drive China's economic growth. There are 1,500 companies that are listed in Shanghai and Shenzhen, but many of them should probably be delisted due to poor quality. In contrast, the US market has about 10,000 listed companies. This suggests that the China market still has great growth potentials. Venture capital and private equities can play a crucial role in funding and nurturing good businesses in China.
We are listed and based in Hong Kong. Given the geographical advantage, a common language and the understanding of evolving government policies in Greater China, we are familiar with the development, culture and operation of companies in this market. In addition, we are positioned to maximize our returns in investments while minimizing the risk of capital loss.
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