China private equity investment surges in April

This undated photo shows sculptures of bulls — symbolizing a red-hot stock market — front the entrance to the Shenzhen Stock Exchange building in Shenzhen. A latest industry report said China witnessed a sharp increase of private equity investment in April. (Qilai Shen / Bloomberg)

BEIJING – China witnessed a sharp increase of private equity (PE) investment in April, boosted by big deals in the medical and IT sectors, according to a latest industry report.

The combined investment in 42 PE deals made public was US$8.4 billion in April, much higher than the US$466 million registered in April last year, according to the report by China Venture, an industry information provider.

In comparison, the combined investment volume in 160 venture capital (VC) deals stood at around 2 billion dollars last month, less than the US$2.6 billion in April last year.

Against the backdrop of mass innovation and entrepreneurship, China has embraced PE and VC investment, especially in emerging industries.

China saw a 49-percent growth in PE and VC investment last year, though global fundraising and investment as a whole fell, according to a recent PwC report.