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Saturday, April 23, 2016, 15:24

China becomes 2nd largest VC destination

By Xinhua

China becomes 2nd largest VC destination
Li Xiaoning, founder of vc.cn, shares his insights with Xu Xiaoping (right), founder of ZhenFund, during an interval of an "angel dinner". (Photo/Provided to China Daily)

BEIJING - China has become the world's second largest destination for venture capital (VC) after the United States.

VC and angel investment are growing rapidly, said Lin Nianxiu, deputy head of the National Development and Reform Commission (NDRC), at a Friday press briefing, claiming there are over 3,000 funds managing more than 1 trillion yuan.

Chinese startups have become a new favorite for investors, Lin said.

The number of new firms has continued to increase due to easier market access. About 1 million companies were registered in Q1, up 25.9 percent from a year ago. Emerging and modern tertiary sectors led the trend.

The service sector grew 7.6 percent year on year in Q1, outpacing a 6.7-percent GDP increase.

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