PE, VC firms cautious in China ventures

Global limited partners are cautious about private equity and venture capital investment in China this year but they believe exit channels have become increasingly smooth, according to a report by ChinaVenture Group.

The study was based on responses from 90 limited partners with businesses in China and abroad, of which 24.4 percent were foreign. Investors in PE and VC funds are known as limited partners.

According to the report, 48 percent of the limited partners surveyed believe there is some risk in the Chinese PE and VC market and they are cautious about investments in the country. Nine percent of them said opportunities in China are limited. Another 24 percent of respondents had a positive outlook for the market this year.