Advances in Economics, Management and Political Sciences

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Proceedings of the 3rd International Conference on Business and Policy Studies

Series Vol. 66 , 05 January 2024


Open Access | Article

Private Equity Development and Investment Research in China under the Background of Sino-U.S. Decoupling

Yankai Feng * 1
1 The Athenian school, Danville, California, United States

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 66, 81-90
Published 05 January 2024. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Yankai Feng. Private Equity Development and Investment Research in China under the Background of Sino-U.S. Decoupling. AEMPS (2024) Vol. 66: 81-90. DOI: 10.54254/2754-1169/66/20241210.

Abstract

This paper focuses on exploring the development and investment directions of China’s private equity funds against the backdrop of Sino-U.S. decoupling. This includes U.S. dollar-denominated private equity funds, Renminbi-denominated private equity funds, and corporate venture capital. The study reveals that the enthusiasm for U.S. dollar-denominated private equity funds in the domestic market has significantly decreased, while the market size of Renminbi-denominated private equity funds has grown. Private equity fund investments have shifted towards advanced manufacturing and domestically developed alternative enterprises. Corporate venture capital has also transitioned from being primarily dominated by internet giants to focusing on high tech industry leaders. In light of adapting to the new landscape of Sino-U.S. decoupling, investments in high-tech industries and advanced manufacturing, support for domestic alternatives, and independent innovation are expected to become the market’s primary trends. Government guidance and support will wield a profound influence on market development, with Renminbi-denominated private equity funds poised to capture larger market shares and investment opportunities.

Keywords

private equity, technology investment, venture capital, decoupling

References

1. Fenn, G. W., Liang, N., & Prowse, S. (1996). The economics of the private equity market. Fed. Res. Bull.,82, 26.

2. Harris, R. S., Jenkinson, T., & Kaplan, S. N. (2015). How do private equity investments perform compared to public equity?

3. Chen, Z. (2023, February 27). Trying out the RMB fund market: Adjusting the USD fund LP structure. 21st Century Economic Report, 010.

4. Wright Robbie, M. K. (1998). Venture capital and private equity: A review and synthesis. Journal of Business Finance & Accounting,25(5‐6), 521-570.

5. Tu, X., Ren, L., & Xing, Y. (2023). Potential impacts of China-US trade decoupling: A scenario simulation based on distinguishing domestic and foreign input-output tables. China Price (05), 26-31.

6. Yi, J. (2022). Study on the impact of the U.S. tech decoupling from China on the Chinese stock market (Master’s thesis, Jilin University). Retrieved from https://kns.cnki.net/KCMS/detail/detail.aspx?dbname=CMFD202301&filename=1022531680.nh

7. Zhu, W. (2023). Analysis of the current development and countermeasures of China’s private equity funds. China Management Informatization (03), 133-137.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 3rd International Conference on Business and Policy Studies
ISBN (Print)
978-1-83558-263-3
ISBN (Online)
978-1-83558-264-0
Published Date
05 January 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/66/20241210
Copyright
05 January 2024
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated