Emerging industries maintain solid growth

Investment companies are looking more to emerging industries for opportunities amid the slowing Chinese economy.

Emerging industries - such as the photovoltaic, new material and new energy industries, Internet and medical equipment industries - have sustained steady growth despite the stagnant global investment trend, said Zhang Wei, a partner in Guangzhou Hiway Capital Partners.

Zhang was speaking at the Invest in China 2012 Emerging Industry Development Forum and Project Capital Matchmaking, hosted by the organizing committee of the 16th China International Fair for Investment and Trade on Sunday in Xiamen, Fujian province.

Emerging industries will further boost the economic recovery and serve as the engine for a third industrial revolution, he said.

"It's necessary that venture capital firms and investors thoroughly consider their investment perspectives in keeping with the adjustment of national policy," said Liu Jun, general manager of Haixia Capital Industrial Investment Fund Management Co.

The capital that the investment companies bring to enterprises will further their chances to expand and tap additional market resources, he said.

The government has come up with a series of policies and measures - such as tax breaks and easing financing - to further stimulate the emerging industries.

With their unprecedented opportunities for development, emerging industries are seen as having high value and receive great attention from local governments and investment and financing institutions.

But problems have arisen to impede this development, including industrial homogenization, low-level competition, the lack of industry chain and core technology, and scattered scientific and technological resources.

According to Zhang, without a long-term plan, companies could easily lose their money despite the promising prospects of projects.

"Many companies invested in the LED industry several years ago, in view of its energy-saving potential. However, a swarm of investors led to excessive production capacity and deficit," he said.

Fujian, a coastal province with high growth rate, has attracted lots of investment during the project matchmaking forums.

zhengxin@chinadaily.com.cn