This report first affirms the achievements of China’s venture capital industry over the past ten years and pointed out that China’s venture capital industry has stepped into a comparatively healthy and active development path. It’s obvious that in different ways, the ‘traffic rules’ and ‘game rules’ also be different.
In view of the existing situation, the bottleneck problems arising from China’s VC/PE industry are underdeveloped exit system prevents VC/PE funds from exiting deals through IPOs; absence of limited partnership results in double taxes and governmental interference;
The case study of background of RMB fund increase, appropriate organizational structure of RMB fund, operation and tax scheme, make the further understanding to the current development of Chinese VC/PE. China’s relatively recent series of regulations has created a legal environment that is highly conducive to the development of foreign invested capital funds within China’s capital market.
Since the opportunity and risk factors varies according to the type of VC/PE so it is first needed fully understand what it takes to invest in Chinese market, then formulate most comprehensive and effective entrance strategies.