Hong Kong Remains at the Epicenter for Venture Deals

Filed in archive Venture Capital on October 14, 2005

Hong Kong Venture Capital Association's chairman Vincent Chan, and the managing director of JAFCO Asia, maintains that the gateway to China is still at the epicenter for venture capital activity for the region.

With nearly $25 billion under management, these HK venture capitalists do solidify their position as Asia's centre for venture capital management.

"The HKVCA was formed in 1987 through the Hong Kong government initiatives. This is in contrast to the China Venture Capital Association which was formed only three and half years ago. Of course, the CVCA focuses on the PRC, while we target the Asian region using Hong Kong as a hub," claims Chan in an interview with ChinaVentureNews.

No one disputes that Hong Kong does offer many core advantages, namely its rule of law and robust banking and financial system for attracting venture capitalists to establish strategic offices.

Although over the past year, many western VCs' have opened offices in China, most experienced financial sinophiles are quick to point out that there still remain far too many corporate goverance risks which are avoided in Hong Kong.

Chan, an ardent champion for Asian private equity, believes that Asia has clearly emerged from a single asset class, which was initially development capital from the 1980s to 1997. Now, the region has witnessed the fruition of a full range of asset classes ranging from venture capital, development capital, buyouts and mergers and acquistions.

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