Recently, in a VC and PE conference in Shanghai, the participants were saying RMB funds are getting more and more popular and they expected it will become the majority in the future.

Without a doubt, there are advantages for RMB funds.  Firstly, it is easier for them to invest in local companies, especially for government regulated projects, such as water treatment, etc.  Moreover, with the A-share market offering attractive valuation for tech companies, RMB funds need not to worry about finding exist strategies for invested companies.

In fact, the current situation for tech investment in China is quite odd.  All the companies, such as Tencent, Baidu, Alibaba, are operating in China.  But they got their initial investment from overseas (the USD fund).  So, they had to list in the oversea markets, such as Hong Kong or America.

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...