Unlike US and EU markets where typical concerns about private equity are excessive leverage, systemic risk and short-termism, the recent market concerns in China have centered around illicit fundraising activities and misappropriation of funds. The evidence of market failure in China challenges...

This chapter focuses on the development of non-bank financial institutions, particularly venture capital (VC), angel capital, private equity, foreign funds and their role in funding entrepreneurial ventures in China. It examines the exits of VC-backed companies through IPOs and acquisitions. It...