Latest News:  
Beijing   Cloudy    19 / 9 ℃  City Forecast

English>>China Business

China's PE investors seek new opportunities amid economic slowdown


09:50, November 01, 2012

BEIJING, Oct. 31 (Xinhua) -- China's economic downturn is forcing private equity (PE) investors to look for new growth opportunities in the sector, insiders said Wednesday.

Wu Huaquan, managing director of Guangzhou Chuangchen Capital Management Co., Ltd, told Xinhua at the ChinaVenture Investment Conference that the country's slowing economy had reduced the number and quality of potential projects for PE investors.

"At present, the industry is in the process of transformation and upgrading," Wu said.

Data released by ChinaVenture, a leading PE data provider, showed that PE investment cases and total volume have both been sliding since the third quarter of 2011.

In the third quarter of this year, ChinaVenture revealed a total of 45 investment cases and total volume of 5.1 billion U.S. dollars, down from 111 cases and 8.55 billion U.S. dollars year-on-year, respectively.

After fierce competition in recent years, PE investors have now found their clear position in terms of their target industries of investment, Wu said.

Shan Xiangshuang, chairman of the China Science and Merchants Capital Management Co., said at the conference that the transformation in the PE industry posed many opportunities for market players.

"PE investors can focus on improving value-added services, making rational investment, enhancing corporate management, upgrading the businesses and readjusting their strategies," Shan said.

Wu said that under the current conditions, investors should nurture prospective projects with a mid- to long-term perspective and invest in fields and markets that they are familiar with.

Official data released earlier this month showed China's economy expanded 7.4 percent year-on-year in the third quarter of 2012, slowing for the seventh consecutive quarter.

News we recommend:
[Special]'Made in China' Revisited Chinese property companies speed up Rising food prices haunt our future
Telecom sector not in trouble Why foreign investors should stay? HNA Group buys 48% stake in French airline
Asian economies turn to yuan  A Blessing for Businesses The Bitter Blessing


Leave your comment0 comments

  1. Name


Selections for you

  1. Troops in field tactical training

  2. PLA, U.S. army bands hold joint concert

  3. N. Korea's Kim Jong Il visit military university

  4. HTC smartphones with Windows 8

  5. Willys Jeep seen in Tianjin, still works

  6. Auto industry's recall system

  7. Artworks? No,they're cuisines

  8. Top 10 sports stars courted by universities

Most Popular


  1. What kind of 'busy culture' do we need?
  2. 'Noah's Flood' breaks down the cultural barrier
  3. A vital asset for emerging ratings agency
  4. Clearing the path for global currency
  5. Why scary Chinese movies are so scarce
  6. Banks get carried away with late fees
  7. Lin Yifu: Tech key to avoid development trap
  8. Seeking justice from pollution
  9. China, US have 'unique' role for world peace
  10. Libya conflict unlikely to impact US presidential race

What’s happening in China

People have fun at Angry Birds theme park in Shanghai

  1. Wage controls to narrow income gap
  2. Beijing stalled on top of traffic jam list
  3. China redoubles efforts against pollution
  4. Witty writer from Japan faked resume
  5. Foreigners give thumbs up to taxi service cards