Reforms 'good news' for PE, VC firms, say experts

More than 80 percent of Chinese companies listed on the A-share market after the resumption of initial public offerings were backed by private equity and venture capital, but the average book return of investors will continue to decrease, according to ChinaVenture Group.

Forty-eight companies listed on the A-share market in January and February. Of them, 39 were invested in by PE and VC firms, raising 24.4 billion yuan ($3.97 billion). A total of 86 exits were made with book investment returns of 13.8 billion yuan.

"This is good news for the Chinese private equity and venture capital sector after a long wait. It showed that PE and VC firms promote the listings of companies to some extent," said Frankie Fang, China managing director of LGT Capital Partners.