Capital Raising - China

China

The Capital Raising market market in China is expected to witness a Total Capital Raised of €87.56bn in 2024.
Traditional Capital Raising is set to lead the market with a projected market volume of €72.71bn in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised (€181,200.0m in 2024).
China's Capital Raising market is witnessing a surge in demand for private equity placements among tech startups, signaling a shift towards innovative financing strategies.

Key regions: United States, China, India, Israel, Europe

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Región

Comparación de regiones

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Analyst Opinion

The Capital Raising market in China has experienced significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in China have played a crucial role in the development of the Capital Raising market.

Chinese investors have shown a strong appetite for investment opportunities, seeking higher returns in a low-interest-rate environment. They are increasingly looking beyond traditional investment options and are willing to take on higher risks in search of potentially higher rewards. This has created a favorable environment for the growth of the Capital Raising market, as companies and entrepreneurs are able to attract capital from a large pool of eager investors.

Trends in the market have also contributed to the development of the Capital Raising market in China. One notable trend is the rise of technology-driven companies and startups. China has become a global leader in technology innovation, and investors are keen to support the growth of these companies.

As a result, there has been a surge in Initial Public Offerings (IPOs) and private placements by technology companies, attracting significant capital from both domestic and international investors. Another trend in the market is the increasing participation of institutional investors. Chinese institutions, such as insurance companies and pension funds, have been actively diversifying their investment portfolios and seeking alternative investment opportunities.

This has led to a growing demand for capital raising options, such as private equity and venture capital funds, which offer attractive returns and diversification benefits. Local special circumstances have also played a role in the development of the Capital Raising market in China. The Chinese government has implemented various policies and initiatives to support the growth of the capital markets and encourage capital raising activities.

These include the establishment of new stock exchanges, the introduction of favorable tax policies, and the relaxation of regulations on foreign investment. These measures have created a more favorable environment for companies to raise capital and have attracted both domestic and international investors. Underlying macroeconomic factors have also contributed to the growth of the Capital Raising market in China.

The country's strong economic growth, large consumer market, and increasing middle-class population have created attractive investment opportunities. Additionally, the government's focus on economic reform and innovation has further fueled the growth of the Capital Raising market, as companies seek capital to finance their expansion and innovation initiatives. In conclusion, the Capital Raising market in China has experienced significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Chinese investors' appetite for higher returns, the rise of technology-driven companies, the increasing participation of institutional investors, government support, and favorable macroeconomic conditions have all contributed to the development of the Capital Raising market in China.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.