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China becomes 2nd largest VC destination

(Xinhua) Updated: 2016-04-23 10:13

China becomes 2nd largest VC destination

A Facebook staff uses a Gear VR virtual reality headset by Oculus and Samsung Electronics at the new Facebook Innovation Hub during a preview media tour in Berlin, Germany, February 24, 2016.[Photo/Agencies]

BEIJING -- China has become the world's second largest destination for venture capital (VC) after the United States.

VC and angel investment are growing rapidly, said Lin Nianxiu, deputy head of the National Development and Reform Commission (NDRC), at a Friday press briefing, claiming there are over 3,000 funds managing more than 1 trillion yuan (around $150 billion).

Chinese startups have become a new favorite for investors, Lin said.

The number of new firms has continued to increase due to easier market access. About 1 million companies were registered in Q1, up 25.9 percent from a year ago. Emerging and modern tertiary sectors led the trend.

The service sector grew 7.6 percent year on year in Q1, outpacing a 6.7-percent GDP increase.

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