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The report titled "China VC/PE Market Review 2021" provides a comprehensive overview of the equity investment market in China for the year 2021. Here's a summarized version in English:
Market Overview: Both the US and China's equity investment markets entered a "fast track" in 2021, with significant growth in fundraising, investment amount, and number of transactions. China's market experienced a rapid recovery post-COVID, with a notable influx of funds from banks and other financial institutions, as well as a surge in investments in sectors like internet, advanced manufacturing, and new infrastructure.
Fundraising: In 2021, China’s equity investment market saw a substantial increase in fundraising, reaching approximately 2.21 trillion yuan (300 Billion USD), a 84.5% increase from the previous year. The market expansion was accompanied by a polarization in fundraising structure, with a rise in large funds but a general decline in the size of individual funds.
Investment Trends: The investment market in 2021 was extremely active. Large financing cases emerged in various industries, focusing on strategic and cornerstone investments in hard technology and scientific innovation. The top 100 investment cases contributed significantly to the total investment amount.
Industry Distribution: A majority of investment cases were concentrated in the top four industries, with significant growth in areas like automotive, clean technology, and semiconductors.
Geographical Distribution: The Beijing, Shanghai, and Shenzhen regions dominated the investment landscape, accounting for over half of the cases. However, rapid growth was also observed in the Jiangsu, Zhejiang, and Hubei regions.
Exit Overview: The number of IPO cases of invested companies increased significantly, with 3099 cases in 2021, a 27.3% increase from the previous year. This growth in IPOs was the main driver for the increase in exit cases in China's equity investment market.
IPO Performance: In 2021, 645 Chinese companies went public both domestically and internationally, a 12.0% increase from the previous year. The total financing scale reached 8562.10 billion yuan, a 1.6% increase.
2022 Market Trends: Looking ahead, the report anticipates continued optimization in the structure of RMB LPs, further expansion in financial openness, new opportunities in green economy due to the "dual carbon" strategy, and a focus on hard technology investments led by state capital.