Declining Investment in China

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http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china

Declining Investment in China

According to a recent press release by Dow Jones there has been declining investment in China at the end of last year. The report notes a more than forty percent fall in venture capital infusion. Direct investment in China has been popular if not always profitable for years. A major issue that we have written about previously is the lack of true transparency in many mainland China investments.

Over 2012 as a whole, investing in China fell roughly forty percent according to published figures. China saw deals valuing less than $4 Billion as compared to deals valuing just under $30 Billion in the USA. Venture capital investing in China is largely a matter of foreigners investing in Chinese companies as they go public. Venture capital investing prior to companies going public is somewhat murkier, the non-transparency issue again.

How Is Declining Investment in China Divided Up These Days?

According to the Dow Jones press release, consumer services get the most venture capital. In 2012 there were fewer than a hundred deals representing $2 Billion in venture capital. The second largest recipient of venture capital in China is information technology which saw just over forty deals last year amounting to just over half a billion dollars. These two sectors led in the declining investment in China with roughly forty percent falls each from 2011.

Unlike the two top sectors, business and financial services investment rose by a couple of percent with around $450 million invested in twenty-seven deals.

Other sectors seeing a fall in investment are health care, utilities, and energy companies. These sectors in aggregate brought in just over $300 million in twenty deals. These sectors fell as a group by about forty percent.

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Declining Investment in China

  1. 1. DecliningInvestment in China By www.profitableinvestingtips.com
  2. 2. According to a recent press release by Dow Jones there has been declining investment in China at the end of last year.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  3. 3. The report notes a more than forty percent fall in venture capital infusion.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  4. 4. Direct investment in China has been popular if not always profitable for years.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  5. 5. A major issue that we have written about previously is the lack oftrue transparency in many mainland China investments.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  6. 6. Over 2012 as a whole, investing in China fell roughly forty percent according to published figures.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  7. 7. China saw deals valuing less than $4 Billion ascompared to deals valuing just under $30 Billion in the USA.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  8. 8. Venture capital investing in China is largely a matter of foreigners investing in Chinese companies as they go public.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  9. 9. Venture capital investing prior to companies going public is somewhat murkier, the non-transparency issue again.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  10. 10. How Is Declining Investment in ChinaDivided Up These Days?http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  11. 11. According to the Dow Jones press release,consumer services get the most venture capital.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  12. 12. In 2012 there were fewer than a hundred dealsrepresenting $2 Billion in venture capital.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  13. 13. The second largest recipient of venture capital in China isinformation technology which saw just over forty deals last yearamounting to just over half a billion dollars.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  14. 14. These two sectors led in the declining investmentin China with roughly forty percent falls each from 2011.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  15. 15. Unlike the two top sectors, business and financial services investment rose by a couple of percent with around $450 million invested in twenty-seven deals.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  16. 16. Other sectors seeing a fall in investment are healthcare, utilities, and energy companies.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  17. 17. These sectors inaggregate brought in just over $300 million in twenty deals.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  18. 18. These sectors fell as a group by about forty percent.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  19. 19. Is This the End of the Ride?http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  20. 20. Ever since PresidentNixon went to China and started opening thecommunist country up to the West,http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  21. 21. China has been on a growth spurt comparableto the economic growth ofthe United States after the US Civil War.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  22. 22. The end result of the USgrowth spurt at the end ofthe 19th century was that the USA emerged as a world power.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  23. 23. China has done the same thing.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  24. 24. However, it is realistic toask if perhaps the recently declining investment in China is a sign of a more generalized slowing.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  25. 25. Certainly the balance of payments surpluses that China runs with many nations,http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  26. 26. most dramatically the USA, cannot be sustainable into the distant future.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  27. 27. We have written aboutintegrating China into theworld economy on a more equitable footing and,http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  28. 28. from the US point of view, investing for a devalued dollar.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  29. 29. Either declining investment in China will drive growth elsewhere,http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  30. 30. or the steady devaluation of the dollar and other currencies versus the Yuanhttp://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  31. 31. will make manufacturing more profitable in the USA, as opposed to the Asian giant.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  32. 32. Declining Investment in Chinahttp://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  33. 33. No nation grows forever.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  34. 34. As economic growth makes a nation more powerful its neighbors react.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  35. 35. We are seeing that nowwith Chinese assertions of sovereignty over theSouth China Sea and the responses of the Philippines,http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  36. 36. Vietnam, Japan, and the rest.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  37. 37. Who would have thought to see the US military having talks with theVietnamese military overhow to deal with China?http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china
  38. 38. Declining investment in Chinamay simply be the first step in a more concerted effort to stem the advance of power and influence by mainland China.http://www.profitableinvestingtips.com/investing-trading/declining-investment-in-china

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