CX Daily: Venture Capital in China Flounders as State Takes Over (Part 1)

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In Depth: Venture Capital in China flounders as state takes over (Part 1)

“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.

The firm, which was set up in 2013, invests in high-tech fields such as artificial intelligence, intelligent manufacturing and semiconductors, and traditionally its investors, known as limited partners (LPs), came mostly from the private sector. But in recent years, the number of government guidance funds (GGFs) has exploded “and now 90% of our limited partners represent state-owned capital,” he said. “Now we are facing these problems.”