In Depth: Venture Capital in China Flounders as State Takes Over (Part 1)

Editor’s note: Venture capital in China is in crisis as government guidance funds overwhelm the industry’s traditional modus operandi. In the first of a two-part series, we examine how these funds have disrupted the country’s investment landscape. In Part 2, we look at how the government is trying to resolve the problems.

“Recently I feel like I've turned into the Minister of Investment Promotion,” lamented Jin Yuhang, founding partner and chairman of Dingxing Quantum, a venture capital (VC) investment firm based in Southwest China’s Sichuan province.