VC Investing in China
The flow of venture capital to China is slowing in response to the global downturn.
According to a new report from the China Venture Capital Association (CVCA), foreign venture capital (VC) investors are concerned about the short term economic prospects for the Chinese economy. More than 43 percent of surveyed VCs agreed that their short term confidence in the Chinese economy has lessened over the last quarter. However, most remain bullish about China’ s long-term prospects, and they remain optimistic that the recovery process will be completed over the course of one to three years. Over this period, VCs expect that environmental protection, energy, consumer products, and health care, will be the hottest sectors for foreign investors.