Trends, Challenges, and Opportunities: China's PE/VC Sector in 2019

January 31, 2020 | BY

Susan Mok

Zaiguang Lu of Han Kun Law Offices and Charles Wu of Han Kun Law Offices' Hong Kong Association Law Firm review major pieces of legislation affecting China's PE/VC industry and offer insight about the key trends, challenges and opportunities in the sector.

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2019 was a year of opportunities, challenges, and change in China's PE/VC sector.  China issued major legislation that further opened its markets to foreign investment.  As a result, non-Chinese investors will have more flexibility and opportunity in their investment activities in China.  However, the broader geopolitical tensions between the United States and China may make a United States listing less attractive and uncertain.  On the other hand, China's introduction of the Science and Technology Innovation Board (STAR Market) may make listings in mainland China more attractive.  These dynamics may lead to a shift in the investment structures used by both Chinese and non-Chinese investors.