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Overall Market Trends: In 2022, there was a noticeable decline in the venture capital and private equity (VC/PE) market in China. The number of new funds established (8730) decreased by 7%, and the committed capital scale decreased by 17% compared to the previous year. There was a cautious approach from limited partners (LPs) due to market volatility and an increasing divergence between general partners (GPs).
Fund Types and Geographic Distribution: Policy-oriented and industrial funds became the main force in the market. In terms of regional distribution, Zhejiang and Guangdong provinces saw a slight decrease in the number of new funds, whereas Anhui and Hubei experienced significant growth, driven by favorable policies in venture investment and mother funds.
Fundraising Trends: There was a trend of capital accumulation at the top, with state-owned backgrounds becoming increasingly prominent, while market-oriented institutions faced challenges. In total, 559 funds completed fundraising, accumulating $1,361 billion, a slight decrease from previous years.
Investment Trends: The number of investment cases and the scale of investments slowed down, with a total of 9,695 investment cases amounting to $1,548 billion. The market showed cautious capital deployment amid economic uncertainties and fluctuating international conditions.
Sector Focus: While IT and information technology remained major areas of focus, investments in the manufacturing sector, especially in high-end manufacturing, saw an upturn. The healthcare industry, along with AI, energy, and mining, and the automotive sector, witnessed more significant transactions, indicating a shift in capital allocation towards these areas.
IPO Market: The year 2022 saw 511 Chinese enterprises achieve initial public offerings (IPOs), with a 79% penetration rate of VC/PE institutions. This indicates a strong presence of VC/PE-backed companies in the IPO landscape.