中国创投暨私募股权投资市场2011前11月市场数据--英文版_56页_1mb

China VC/PE Market Review Jan-Nov 2011 Summary

Overview of China's VC/PE Market

The VC/PE market in China experienced significant growth in 2011, with a notable increase in fundraising, investment, and exit activities. The market was influenced by supportive policies and the rapid development of domestic and foreign investment vehicles, particularly RMB funds. The overall market showed a positive trend, with both domestic and international players contributing to the expansion.

Major Findings

Fundraising Trends

• Total Funds Raised: In Jan-Nov 2011, 323 funds were raised by foreign and domestic institutions, marking a year-on-year increase of 118.2%.
• Fundraising Amount: The total capital raised reached US$26.46 billion, a year-on-year increase of 162.0%.
• RMB Funds: 295 RMB funds were raised, totaling US$19.80 billion, representing an increase of 115.3% in number and 219.6% in amount.
• Foreign Currency Funds: 28 foreign currency funds were raised, totaling US$6.66 billion, up 154.5% in number and 70.7% in amount.

Investment Trends

• Total Investment Deals: 1,401 investment deals were made, a year-on-year increase of 98.2%.
• Investment Amount: The total investment amount reached US$11.73 billion, an increase of 163.8% year-on-year.
• PE Investments: 654 PE investments were made, totaling US$23.81 billion, up 113.0% in number and 155.6% in amount.
• Investment by Currency: The majority of investments were in RMB, followed by USD and other currencies.

Exits

• VC Exits: There were 435 exits, with 20% of them being early-stage investments.
• PE Exits: 123 PE exits were recorded, with machinery manufacturing and electronic & opto-electronics equipment sectors showing the most exits.
• Exit Options: IPOs remained the primary exit method, although non-IPO exits gained momentum.

Market Change Analysis & Z-Insights

VC/PE-backed M&As

• Number of M&As: 175 M&As were recorded, with a significant share of deals in the machinery manufacturing, clean-tech, and construction/engineering sectors.
• Value of M&As: The total value of these M&As reached US$9.92 billion, with energy & mineral and real estate sectors leading in value.

IPO Market

• Total IPOs: 548 Chinese enterprises listed worldwide in Jan-Nov 2011, with Chinese IPOs accounting for 59%.
• Domestic IPOs: 263 domestic IPOs were recorded, with ChiNext being the main listing venue.
• Overseas IPOs: 61 overseas IPOs were recorded, with the NYSE showing the highest average ROI of 10.88 times.
• ROI by Market: Domestic IPOs had an average ROI of 8.43 times, while overseas IPOs had an average ROI of 6.64 times. Notably, the average ROI for six VC/PE firms behind SINOVEL was 480 times, indicating high returns for some.

Policy Impact

• VC/PE Policy Developments:
  • The Ministry of Finance and the National Development and Reform Commission issued guidelines to support VC investment in emerging industries.
  • The CSRC updated regulations on asset reorganization and ancillary financing for listed companies, aiming to curb speculative activities and improve efficiency.
  • The CSRC established the Expert Advisory Committee of ChiNext to assist in IPO review processes.
  • The Ministry of Commerce introduced provisions for cross-border RMB direct investment, allowing foreign investors to use RMB for investments.

LP Market

• Total LPs: 4,758 LPs were recorded in the VC/PE market, with a total available capital of US$679.28 billion.
• Domestic LPs: Composed mainly of government agencies, public pension funds, large/medium enterprises, and large/medium financial institutions.
• Foreign LPs: Included public pension funds, insurers, universities, family offices, and foreign FOFs.
• Capital Available: Foreign LPs had significantly more capital available for investment, five times that of domestic LPs, due to the concentration of capital among wealthy families and individuals in domestic LPs.

Geographical and Industry Trends

• Geographical Distribution: Beijing remained the top region for both VC and PE investments, while Jiangsu had the highest investment value.
• Industry Distribution:
  • VC Investments: Machinery manufacturing, bio/healthcare, and clean-tech sectors received the most attention.
  • PE Investments: Energy & mineral, real estate, and machinery manufacturing were the leading sectors.
  • IPOs: Machinery manufacturing and construction/engineering dominated domestic IPOs, while finance and bio/healthcare were prominent in overseas IPOs.

Summary of Key Trends

• RMB Funds dominated the market, with significant growth in both number and amount raised.
• VC/PE-backed M&As and IPOs were active across multiple industries, with notable growth in the number of deals and value.
• Policy changes played a crucial role in shaping the market, encouraging participation, investment, and exit activities.
• Domestic LPs made up 80% of the total LPs, with a much smaller capital base compared to foreign LPs.
• IPO performance varied by market, with overseas IPOs showing higher ROI compared to domestic ones, though the latter were more numerous.

Conclusion

The Chinese VC/PE market in Jan-Nov 2011 showed robust growth, driven by supportive policies, increased domestic and foreign participation, and a surge in investment and exit activities. RMB funds became the dominant force, with the VC and PE sectors contributing significantly to the overall market expansion. The IPO market also saw a notable increase, with ChiNext being the primary listing venue for domestic IPOs, and overseas IPOs attracting substantial capital and offering higher returns. The market dynamics reflected a shift towards more diversified investment strategies and a growing interest in sectors like clean-tech and machinery manufacturing.