1 AIT Asian Institute of Technology

Foreign investment in China through venture capital

AuthorLiu, Jin
Call NumberAIT RSPR no. SM-01-26
Subject(s)Investments, Foreign--China
Venture capital--China

NoteA research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-01-26
AbstractVenture capital is a branch of financing technology that integrates the financing, management, and marketing assistance to the modern economy, in which venture capital firms can become a valued-added cohort for investee companies. Venture capital investment began in China in 1986. In order to increase long-term investment, Chinese government has encouraged various foreign investment models. Venture capital is becoming an important approach of obtaining foreign capital and has reached a new level of prominence in China since the mid-1990s. Many foreign companies are positioning themselves to take advantage of the blossoming opportunity. However, China still lacks of legal system and regulation to foster venture capital and protect its activities. The investment environment is not so healthy, but it is friendly. In this report, we first give an overview of the development of venture capital industry in China and its position in Asia. Then from the view of foreign investors, we summarised a variety of typical situations in which a venture capitalist will possibly face in order to illustrate his or her interaction with major participants. This understanding of venture capitalist's role in Chinese-characterised environment would be valuable for new investors. In addition, the cmTent problems facing in venture capital industry in China is analysed. A number of recommendations for both government and foreign venture capitalists are presented. Future studies are suggested toward the goal of improving the venture capital development in China.
Year2001
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-01-26
TypeResearch Study Project Report (RSPR)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Examination Committee(s)Ramachandran, Neelakantan ;Truong Quang;Sununta Siengthai;
Scholarship Donor(s)DAAD;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2001


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