Chinese private equity appeals for policy support

The country's PE industry calls for the resumption of mainland IPOs and a freeze of taxes to pull it through the current downturn.
PE partners say the shutdown of the mainland IPO market means PE firms must depend on M&A deals to exit the companies in which they invest.
PE partners say the shutdown of the mainland IPO market means PE firms must depend on M&A deals to exit the companies in which they invest.

China’s regulators need to do more to help private equity firms get through difficult times, industry executives said at a conference in Shenzhen on Friday.

The Chinese PE industry, which had been flourishing for 10 years, has stagnated since the second half of 2011. The number and the size of the completed PE investments dropped 31.9% and 31.4% from end-2010 to end-2011 respectively, to the lowest levels since 2009, according to ChinaVenture, a domestic investment consulting firm.

During the past five years, venture capital and private equity capital have invested a combined Rmb700 billion $114 billion in 6,647 companies. However, only 610 or 9.5% of the...

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