As China VC Investments Jump 70%, Zero2IPO Founder Says Such a Sharp Increase Was Long Absent(Yicai Global) Oct. 21 -- Companies in China bagged CNY1.05 trillion (USD164.2 billion) in investment from venture capital institutions in the first three quarters of this year, rising by more than 70 percent from a year ago.
Such an increase hasn’t been seen in the VC industry for a long time, Ni Zhengdong, founder of investment service platform Zero2IPO Group, said during a forum yesterday. The number of fresh financings also jumped by more than 70 percent from a year earlier, he added.
The three top sectors were information technology, biotech and healthcare, as well as semiconductors and electronics, making up more than 60 percent of the total, according to Ni.
VCs have been able to fill their coffers quickly. From January to September, VCs raised CNY1.27 trillion, beating the full-year numbers of 2020 and 2019, as well as up by 50 percent from the nine-month period of a year ago, said the founder.
The most heated equity investment regions are the big cities of Beijing, Shanghai, and Shenzhen. These three were followed by Jiangsu, Zhejiang, and Guangdong provinces, with the six areas making up about four-fifths of the total. The Yangtze River Delta accounted for 40 percent of the tally.
Beijing and Shanghai are close rivals. The capital city attracted almost CNY230 billion (USD35.97 billion) in investment in the first three quarters and Shanghai about CNY210 billion. Shenzhen and Jiangsu province recorded about CNY110 billion each. Zhejiang and Guangdong provinces (excluding Shenzhen) each had about CNY70 billion.
Despite the initial public offering headwinds in the States in the third quarter, Chinese startups raised CNY657.1 billion via new listings worldwide, a 15 percent increase from a year ago, according to Ni. The number of new IPOs climbed by nearly 23 percent to 472.
Among the startups, the field of machinery manufacturing had the biggest number of new IPOs, followed by healthcare, as well as semiconductors and electronics. But the internet industry was losing traction, falling to eighth place in the ranking. Some 21 new IPOs were logged in the sector over the nine months.
Editor: Emmi Laine, Xiao Yi
