Home > Growing The Venture Dragon: China “风投巨龙”的成长—中国 A Regional Case Study

Growing The Venture Dragon: China “风投巨龙”的成长—中国 A Regional Case Study


The eyes of the world are on China’s remarkable economic growth; but while China’s venture capital market – the world’s second largest as of 2015 – imitates that development, few people are aware of it.

In this article, Prof. Liu explores the history of the venture capital market in China from 1985 to 2015. This market grew from US$518 million to US$16.8 billion between 2001 and 2014. It began as a strictly government-funded activity, but at the turn of the century regulation was changed to encourage VC activity, and private and then foreign investments drove the market higher and higher. The article shows in detail – with accompanying data – the rise of foreign investment, the developments of local stock markets and the VC nurturing measures taken by national and provincial governments.

The author concludes with predictions for the next stage that we can expect in this lively evolution. She expects an increase in government funding and financial reform, a strengthening of the local VC ecosystem through driving changes in education and culture, and a stronger domestic IPO market.

in 2014.

Appeared in CVR Issue 2 – History of Venture

Original Paper PDF:

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About the author

Manhong Mannie Liu – Director and Professor at Venture Capital Research Group, Center for Fictitious Economy and Data Research, CAS                                                                                                                                                                                                                                                          

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