A Snapshot of China's Venture Capital Market, Q1 2012

China's venture capital market reported 93 transactions involving a combined $725 million in the first quarter of 2012, down 44.6% and 57.1% respectively from the previous quarter, according to statistics from ChinaVenture, a leading financial information service provider.

The number of transactions hit a quarterly low since 2010 but the venture capital market will likely rebound in the second half of this year as asset prices are tipped to fall, ChinaVenture added.

Venture capital funding in the internet was the most active in terms of both the number of transactions and the amount invested. The internet industry had 26 transactions valued at $228 million, accounting for 27.9% and 31.5% respectively of the totals, ChinaVenture said. The healthcare and information technology industries came in second and third.

Breakdown of Industries by Number of Transactions, in %, Q1 2012
Internet: 28%
Healthcare: 13%
IT: 12%
Manufacturing: 12%
Telecoms: 10%
Energy/mining: 5%
Agriculture: 4%
Auto: 3%
Media/entertainment: 3%
Others: 10%

Breakdown of Industries by Transaction Value, in %, Q1 2012
Internet: 32%
Healthcare: 14%
IT: 11%
Manufacturing: 9%
Agriculture: 8%
Media/entertainment: 6%
Telecoms: 5%
Energy/mining: 4%
Others: 11%

Breakdown of Regions in by Number of Transactions, Q1 2012
Beijing: 25
Guangdong: 19
Shanghai: 14
Zhejiang: 5
Jiangsu: 4
Jiangxi, Fujian: 3
Hong Kong, Shaanxi, Shandong: 2
Chongqing, Henan: 1
 
Breakdown of Regions by Transaction Value, in $ Million, Q1 2012
Beijing: 212.75
Guangdong: 113.61
Shanghai: 93.35
Fujian: 85.66
Zhejiang: 37.66
Chongqing: 33.77
Hong Kong: 22
Henan: 19.42
Shaanxi: 17.68
Jiangxi: 14.35