Private equity firms are rethinking their strategies in China as a widening regulatory crackdown on some of the country's hottest sectors forces investors to scout for bets in other industries that they hope will be less vulnerable to sudden policy changes.
Private equity and venture capital funds are pivoting away from data-heavy, consumer-facing internet companies to sectors including semiconductors and renewable energy, industry executives said.
"We are faced with the most stern regulatory environment in over a decade, when market competition is the fiercest and capital the most abundant," said Richard Ji, chief investment officer and managing partner of All-Stars Investment. The number of funds raised this year, however, is less than a third of last year and a steep drop from the fundraising peak in 2016 and 2017 when over 1,100 funds were raised each year, the data showed.
Those sectors are also seen by some executives to be in line with China's strategic goals, as, investors say, Communist Party rulers putsand remake certain sectors to curb cost pressures and better serve ordinary people. Investors are also chasing tech firms that only concentrate on the Chinese market to avoid potential regulatory risks with their overseas operations, said a Beijing-based senior investor with a PE fund.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Los elefantes errantes de China podrían regresar a casaUna manada de elefantes que fascinó a la población local y a gente de todo el mundo por su viaje de un año por el suroeste urbano de China parece dirigirse por fin a casa, tras allanar granjas e incluso una residencia de ancianos para conseguir comida
Read more »
U.S. rallies to top China in Tokyo Olympics gold medal tallyA final day flurry of golds pushed Team USA to the top of the medal table at the Tokyo Games.
Read more »
Alibaba’s #MeToo scandal is warning for China techAlibaba's (9988.HK) MeToo moment rings loud alarm bells for China’s embattled technology sector at a bad time.
Read more »
Oil slides on China COVID-19 curbs, strengthening U.S. dollarOil prices fell nearly 2% on Monday, extending last week's steep losses on the back of a rising U.S. dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand.
Read more »
China ataca a EEUU por recibir refugiados de Hong KongWashington y Beijing están enfrentados sobre toda una gama de asuntos comerciales y de política exterior
Read more »
‘Powerful signal’: Biden’s infrastructure bill sends message to ChinaPresident Joe Biden has billed the $1 trillion infrastructure investment package under consideration in the Senate as critical to keeping the U.S. ahead of China
Read more »