Shenzhen Capital Group Co, China's largest domestic venture capital fund, said on August 09 that more than 10 companies in its portfolio are expected to list domestically or abroad by the end of this year.
Shenzhen Capital's investments - typically early-stage companies - are accelerating their listing plans as they want to tap China's bullish stock markets to fund their fast expansion, said Andy Liu, general manager for the Beijing branch of Shenzhen Capital Group.
Shenzhen Capital researched about 500 companies and decided to invest in 21 in the first half of this year, he said, adding that about 90 percent of those investments would eventually go public.
China has become a magnet for global venture capital and private equity funds such as Carlyle Group and Softbank Corp, which are flocking to cash in on the country's breakneck economic growth of more than 10 percent annually.
Shenzhen Capital - which invests mainly in small-cap technology companies - has had backing from the local government of Shenzhen, near Hong Kong, and incorporated in 1999 with total capital of 1.6 billion yuan ($211.6 million). The investment portfolio of Shenzhen Capital, which expects to have 5 billion yuan under management by year-end, includes China Techfaith Wireless Communication Technology, Shenzhen Coship Electronics and Acorn International Inc, China's largest TV home shopping company.
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