Wednesday, 2024 February 21

Periscope Volume 10 | Private Investment in China — 2020 in Retrospect

This is a preview of Periscope—a weekly report by KrASIA, delving into China’s industries and markets. We discuss a different space each week and include highlights of relevant top stories. If you would like to read the report in full and gain access to our library, please click here.

The year 2020 saw a surge in initial public offerings (IPOs) in China. In mid-2019, the Shanghai Stock Exchange piloted a registration-based IPO system for the newly established Sci-Tech Innovation Board, also known as the Star Market. Investment exit opportunities for private equity managers have in turn swelled substantially, leading to the new popularity of mid- to late-stage investments in primary markets.

In a market flush with capital, high-quality startups and entrepreneurs can be more difficult to identify. Investments in pre-Series B rounds decreased both in the number of deals and check sizes. This phenomenon — rarely seen in recent years — indicates that early-stage investors are no longer casting a wide net, but are instead concentrating their investment power on fewer, more promising startups.

China’s investment markets can be a hard nut to crack. In this volume of Periscope, we will unpack the facts and break down new trends in the country’s private investment scene, focusing on the dynamics of 2020 and offering predictions for 2021.

If you would like to continue reading about China’s M&A scene in 2020 and what to expect this 2021, gain access to our library, by clicking here.

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