Asia New Vision Forum: Fresh Stimulus Package ‘Great News’ for Startups, VC Investor Says
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China’s latest economic stimulus package is “great news” for later-stage startups, a Chinese angel investor said at a Caixin-hosted forum Wednesday, as many IPO-hopefuls that were marooned when Beijing tightened listing rules earlier this year could expect a return of capital as the market regains confidence.
Speaking at the Asia New Vision Forum 2024 in Singapore, Anna Fang, founding partner and CEO of venture capital firm ZhenFund, said that the best thing that could happen now is that “the public markets will have a nice comeback, which will finally let middle and late-stage investors start investing again.”
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- China's new economic stimulus measures, including lower mortgage rates and a policy rate cut, aim to boost an economy weakened by a property slump and low consumer confidence.
- The stimulus package has positively impacted the stock market, with the Shanghai Composite Index rising 4.15%, its largest increase in over four years.
- Although domestic IPOs face stricter rules, offshore listings are becoming more popular, with ZhenFund seeing a record number of IPOs in Hong Kong, the U.S., and mainland China.
- ZhenFund
- ZhenFund, founded by Anna Fang, is a venture capital firm supporting early-stage startups. At the Asia New Vision Forum 2024, Fang highlighted ZhenFund's success in navigating China's tightened IPO rules by opting for more offshore IPOs, recording its highest number of IPOs this year—among them, listings in Hong Kong, the U.S., and mainland China. Despite perceived drops in startup numbers, Fang noted a rise in new enterprises, particularly driven by the artificial intelligence sector.
- 2023：
- The government began accelerating efforts to boost the country's sluggish stock market.
- 2024：
- ZhenFund had the most number of IPOs they've ever had, including listings in Hong Kong, the U.S., and the Chinese mainland.
- At least 2022 through August 2024：
- Surge in the number of new Chinese startups.
- April 2024：
- State Council, China’s cabinet, released new guidelines leading to stricter listing standards on the Shanghai and Shenzhen exchanges.
- June 2024：
- More than 100 companies withdrew their IPO applications.
- July 8, 2024：
- By this date, some 300 companies withdrew their IPO applications in China.
- Tuesday, September 24, 2024：
- Beijing announced a slew of stimulus measures including lowering rates on existing home mortgages and cutting a key policy rate.
- Tuesday, September 24, 2024：
- Shanghai Composite Index closed up 4.15%, marking its largest jump in over four years following the stimulus announcement.
- Wednesday, September 24, 2024：
- Caixin-hosted forum where a Chinese angel investor announced China's latest economic stimulus package.
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