China Should Lean More on Private Capital for Tech Innovation, Investor Says

China should build a more market-based investment environment and rely more on private capital to help tech startups reach commercialization, according to Hopu Investments founder and Chairman Fang Fenglei.

The key challenge facing China’s innovation ecosystem is crossing the “valley of death” between scientific research and large-scale commercialization, the veteran dealmaker said at the Caixin Summer Summit in Hangzhou on Wednesday. Addressing this challenge will require more talent with expertise across multiple fields, multi-tiered capital markets, and a more market-driven investment environment, he said.