Business
UPDATED: 13:35, October 11, 2004
Venture funds seen pouring into China
Financial experts have predicted that as much as 15 billion US dollars in venture capital could pour into the Chinese mainland in the next five years as investors seek higher returns compared with other markets.
The South China Morning Post quotes Patrick McGovern, chairman and founder of Boston-based International Data Group as saying that contrary to popular perception, investment risks are lower on the mainland than elsewhere.
He notes that mainland companies are more determined to survive tough times, making them less risky for the investors who backed them, adding that Chinese people seem more emotionally attached to their businesses. For venture capitalists, the returns were about double similar investments in Europe and the US.
The Ministry of Science and Technology indicates that as of May there were about 300 venture-capital institutions in the Chinese mainland, with about 6 billion US dollars in assets. Over the past 12 months alone, venture capitalists have invested about 400 million US dollars in the mainland.
Soruce: CRI/South China Morning Post
Copyright by People's Daily Online, all rights reserved