Home / Business / News Tools: Save | Print | E-mail | Most Read | Comment
Slower growth excites venture capital funds
Adjust font size:

Venture capitalists see China's slowing growth as an opportunity to increase investment, mainly in consumer-oriented sectors, industry insiders said during a forum yesterday.

The hot topics were investments in food chains, health care, children's products and online games, investors said during the Piper Jaffray & ChinaVenture Investment Conference 2008.

"China's slowing economy is just what I hope for (as a member of the venture-capital industry)," said Jenny Lee, the managing director of Granite Global Ventures, which manages three funds valued at US$1 billion.

GGV would "greatly increase" its investment if China's growth in gross domestic product slows this year, said Lee, one of the conference's panelists.

China's GDP growth rate is expected to drop to about eight percent in 2008 from 11.4 percent last year.

However, spending by China's middle class will lift to a record high, which will boost the consumer market, panelists said.

Middle-class households, earning between US$3,125 and US$5,000 a year, will account for 66.2 percent of China's total urban families in 2015, from 39.6 percent in 2005, according to McKinsey and the National Bureau of Statistics.

The rising middle class is a potential catalyst to fuel the consumer market, based on China's huge population, according to Jay Chen, partner of a Softbank fund of US$100 million in the Chinese and Indian markets.

"Lots of investment opportunities are unique to China, such as Sichuan-style restaurants, massage parlors and online games, said Michael Chow, managing director of JAFCO.

VC investment in China reached US$3.24 billion in 2007, an 82.7-percent increase from the previous year, with most going to the broader information technology sector.

(Shanghai Daily March 12, 2008)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- VC investment in China more than doubles in Feb.
- VC investment hits US$3.2b in 11 months
- China's VC and PE markets see monthly new high
Most Viewed >>
- Inflation hits 8.7%, far surpassing forecasts
- Baidu to offer IM, online trading within this year
- Trade surplus shrinks 63% in February
- China's strong growth to continue after Olympics: UN
- 2008 Geneva Car Show

May 15-17 Shanghai Women's Forum Asia

Dec. 12-13 Beijing China-US Strategic Economic Dialogue

Nov. 27-28 Beijing China-EU Summit

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?