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China Offers Good Chance for Venture Capital Businesses
Over 1,300 venture capital organizations at home and overseas attended the Second China High-Tech Fair, trying to take advantage of the good opportunities the country has prepared for them.
The second board market to be established in the Shenzhen Stock Exchange by the end of this year will offer convenient channels for the free flow of venture capital invested in high-tech businesses, said Kan Zhidong, head of the Shenzhen Venture Capital Association which is formed here today.
The move will further stimulate domestic and overseas venture capital organizations to invest more in the country's high-tech industry.
Kan said that a set of rules on management of the industrial investment fund will soon be promulgated to forge a sound legal climate for venture capital organizations.
Shenzhen, China's first special economic zone next to Hong Kong,was approved by the Ministry of Science and Technology to be the first pilot city in China for using scientific and technological venture capital.
Shenzhen now has over 30 venture capital institutions with over 3 billion yuan of venture capital. The city has formed a framework for the venture capital system dominated by government held venture capital companies with overseas venture capital organizations playing the key role.
The Shenzhen Venture Capital Association established today has 55 members, 43 of which are collective members and 12 individual members.
A temporary regulation practiced in Shenzhen stipulates that foreign venture capital companies which have over 70 percent of their capital invested in new high-tech industries will be able to enjoy the preferences designated for high-tech businesses.
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