| Venture capital firms invest in equity interests in | | | | investments in new technologies. Venture capital |
| high-tech start-up companies. The flow of venture | | | | financing has given rise to a dynamic system of |
| capital in China is now determined by market forces | | | | modern financial products and services by introducing |
| and follows international trends. Venture capital firms | | | | a series of innovations that include professional |
| make up for a defect in traditional financing channels, | | | | investment, participation in management, long term |
| which do not provide sufficient funds for high-risk and | | | | shareholding and optimal risk sharing, and the |
| long-term investments in new technologies. China | | | | institution of venture capital financing has become |
| investments, china investment, investment in china, | | | | indispensable in modern China technological |
| Chinese investment, investing in china. | | | | industrialization. In fact, it can be argued that a new |
| New developments in science and technology are | | | | financial system based on venture capital financing |
| bringing about sweeping changes to the world | | | | and a new industrial sector based on high |
| economy. These changes are ushering in a new | | | | technologies form the two pillars of the new |
| economy by fostering innovations in business models, | | | | economy. |
| business concepts, products and services. | | | | |
| Development of the new economy calls for a | | | | The Chinese venture capital industry started in the |
| constant inflow of capital. | | | | mid-1980s when the government decided that it |
| | | | | should develop various high-technology industries. The |
| Venture capital financing, a specialized form of | | | | company has performed well due to its adoption of |
| financing, has come to fill the void. Venture capital | | | | internationally recognized rules and procedures of |
| firms invest in equity interests in high-tech start-up | | | | venture capital business, the strong local government |
| companies. Venture capital firms make up for a | | | | support, the diversity of its shareholders, an optimal |
| defect in traditional financing channels, which do not | | | | configuration of various resources, an excellent |
| provide sufficient funds for high-risk and long-term | | | | investment team, and a first-class R&D group. |