Private Equity in China

In China, private equity began to rise in 2004-2005. Despite the crisis, the industry reached new highs in 2010. Nevertheless, the two last years have seen important fundraisings on the domestic market coupled with significant investments in mainland China. But the industry still lacks maturity and faces two main challenges: the need of a secondary market as an alternative to IPOs and an improved link with the credit market, mainly for for M&A and build-up operations that increase the allocation of capital in the economy.