TLDR:
Chinese venture capitalists warn that the IPO freeze in China is affecting tech startups by limiting their access to funds and hindering innovation. This has led to a significant drop in IPO funds raised and multiple Chinese IPO candidates ending their listing plans. Venture capitalists are concerned about the impact on China’s technology innovation and are calling on the government for support.
Key Points:
- Chinese venture capitalists struggle to recoup investments due to the IPO freeze, impacting innovation in the economy.
- Total funds raised via IPOs in mainland China have decreased nearly 90% for the first four months of the year.
- Policies to support the secondary market are perceived as disrupting the primary market, leading to industry concerns.
Chinese venture capitalists are worried that the current IPO freeze in China is having a detrimental impact on tech startups and innovation in the economy. At the ChinaVenture Investment Conference in Shanghai, industry experts expressed concerns about the challenges they face in recouping their investments through traditional IPO routes. This has resulted in a significant decline in funds raised via IPOs in mainland China, with over 130 Chinese IPO candidates canceling their listing plans. The industry is facing policy uncertainty and increased pessimism, with many firms having to cut staff. Venture capitalists are calling on the government to introduce detailed policies to support the struggling VC industry and address the challenges faced by the primary market. They hope that the government and regulators will prioritize the primary market and listen to their concerns to help foster innovation in China’s tech sector.
