Local currency venture capital funds in China now surpass those raised in dollars for the first time.
Gavin Ni, president of conference organizer Zero2IPO, said at its 10th China Venture Capital and Private Equity Annual Forum that in the past few years there had been a shift to RMB-denominated onshore funds from foreign-currency and offshore funds.
However, there remains debate on the relative advantages and use of the different funds as some firms have both offshore or dollar funds and RMB funds.
Fund managers said offshore funds were disadvantaged by being unable to invest in some sectors, such as media and some technology, facing changing tax and currency conversion rules and limits on exits thro ugh flotations on the Shenzhen stock market.
Local currency funds by contrast are limited in their ability to do follow-on investing.
This report and picture was filed by Andrew Gaule with his H-I Network in Shanghai.