私募股权趋势与发展（2020版）之中国篇（英文）

Definitive global law guides offering comparative analysis from top-ranked lawyerschambers.comGLOBAL PRACTICE GUIDESPrivate EquityChina: Trends & DevelopmentsSteven Yu, Jeffrey Zhu, Liam Yu and Jia Guo Global Law Office20202CHINA TreNds ANd developmeNTsTrends and DevelopmentsContributed by: Steven Yu, Jeffrey Zhu, Liam Yu and Jia Guo Global Law Office see p.7CovId-19’s Impact on the marketThe outbreak of COVID-19 has had a significant impact on the private equity market in China. Particularly, in the three months following the Lunar New Year in late January, which featured a large-scale decline in both the deal numbers and capital raised compared to the same period last year. Due to travel restrictions and compulsory quarantine measures, most business trips in the private equity (PE) and venture capi-tal (VC) sectors had to be postponed, and video calls, though useful, result in the execution of deals becoming significantly more time consuming. Further issues included uncertainties of valuation of target assets; equity buyers expected a lower price, while sellers hoped for a rebound in market and a better finan-cial report. Despite the slow start to the year, China’s economy is shifting into recovery mode, and there are signs of optimism. During the past few months, the Chinese stock markets performed beyond expectation, which has encouraged investors and fund manag-ers to look for opportunities in the PE/VC market. In addition, the COVID-19 outbreak has strengthened the focus on certain sectors, eg, healthcare, pharmaceutical, e-commerce, online education, semi-conductor and high technology, which will benefit from the societal shift of a post-COVID-19 era.role of state-owned Capital In the first quarter of 2020, the state-owned capital played a dominant role in rejuvenating the PE/VC market of China. According to Zero2IPO Research, the average capital raised from state-owned limited partners was 7.53 times of that from private limited partners. In addition, state-owned general part-ners raised 65.7% of the total capital in the domestic fundraising market. The trend is unlikely to fade as the Chinese government expects the state-owned capital to continue to play an important role in developing the capital market and implementing industrial policies. However, state-owned capital is facing more red tape over its business activities. Among others, the government promulgated certain provisions on the registration of state-owned equity of limited partner-ship enterprises, which will lead to a more stringent regulatory framework. If a state-owned investor is to be involved in fund-raising or PE/VC acquisition, the fund managers are advised to draw-out decision-making processes and consider the special requirements for protection of state-owned assets. merger Clearance review in pe/vC deals In the first half of 2020, the State Administration for Market Administration (SAMR) publicly announced two penalty cases involving the acquisition of minority sta