China Private Equity Investment Plunges to Eight-Year Low

Private equity investment in the Greater China region plummeted 53% year-on-year in 2022 to $62 billion, hitting an eight-year low, amid growing macroeconomic headwinds, consulting company Bain & Co. said Tuesday in a report.

After 10 years of rapid expansion, China’s PE market reached a historic high in 2021. But the market experienced significant challenges in 2022 in every aspect from fundraising to investment exit, leading to a decline in both transaction volume and value, said Zhou Hao, the head of Bain’s Greater China PE practice in Hong Kong.