China to see PE fundraising rebound in 2014 – PwC

The accountancy firm noted that investment environment has also become more stable due to gradual improvement of the regulatory system and local policies for VC and PE.

In recent months, government agencies, including the China Securities Regulatory Commission, are actively discussing how to further regulate and support the development of the industry following amendments to China's Securities Law last year.

Meanwhile, local governments continue to launch PE investment incentives to attract registration of renminbi-denominated funds and stimulate local economies. PwC said a number of renminbi funds have started looking at areas such as Shenzhen Qianhai, Guangzhou, Hengqin, Xinjiang and Tibet. Shanghai Pilot Free Trade Zone is also drawing interest.

In 2013, renminbi fundraising declined for the second straight year as the domestic Chinese PE industry saw further consolidation, while US dollar fundraising has remained reasonably healthy.

"Although renminbi PE fundraising declined in monetaryterms, its share of the market increased to 77% in 2013, up by 12% compared to 2012," said Jianbin Gao, PwC's PE group lead for Central China.

Technology, media and telecommunication (TMT), healthcare, and consumer related industries are all expected to see strong investment growth this year. Exits are also tipped to prove fruitful, with PE-backed companies completing A-share listings and more fund mangers opting for secondary deals.

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• Topics
• Greater China
• Renminbi fund
• Fundraising
• Exits
• China
• PwC
• Fundraising
• Renminbi
• Exit
• regulation