VC institutions close to 300 in China
By Wang Hongjun (chinadaily.com.cn)
Updated: 2004-04-02 14:47

There are almost 300 venture capital institutions in China with 50 billion yuan (US$6 billion) in assets, according to the Ministry of Science and Technology (MOST).

The ministry said the amount of venture capital investment in 2002 has reached 20 billion yuan, 85 percent of which was poured into the software and information and communications sectors. While in 2003, enterprises with annual profit of less than 30 million yuan received the 85 percent of the fund, the report showed.

Venture capital has emerged as a driving force in China's economic development, job creations and industrial structuring. However, said the report, venture capital in China was rather low compared to the United States and Israel.

The report said the ministry has been working with National Development and Reform Commission, the Ministry of Finance, China Securities Regulatory Commission, China Banking Regulatory Commission and State Administration of Foreign Exchange, to find ways to boost the venture capital development in the country.

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