Asia Pacific Journal of Management

, Volume 24, Issue 3, pp 247–268 | Cite as

Venture capital in China: Past, present, and future

  • David AhlstromEmail author
  • Garry D. Bruton
  • Kuang S. Yeh


This article reviews the literature on venture capital in China and examines where China’s venture capital industry has been and where it is likely to go in the future. Since the 1980s, venture capital in China has grown steadily alongside the robust national economy. The future is likely to offer even greater opportunities, as entrepreneurs are encouraged and property rights improve. However, there will also be a period of transition as the market continues to mature and as new legal structures and commercial arrangements emerge. Venture capital in China has many interesting differences from that in Western countries. The venture capital industry is shaped by the institutional context and China is no exception to this. This article also examines some specific differences between the system in China and that of the United States. Future prospects for venture capital are also appraised as China continues its transition to a market economy.


China Venture capital Entrepreneurship Emerging economies Institutional theory Transition economy 


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Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  • David Ahlstrom
    • 1
    Email author
  • Garry D. Bruton
    • 2
  • Kuang S. Yeh
    • 3
  1. 1.Department of ManagementThe Chinese University of Hong KongShatin, N.T.People’s Republic of China
  2. 2.M.J. Neeley School of BusinessTexas Christian UniversityFort WorthUSA
  3. 3.Department of Business ManagementNational Sun Yat-Sen UniversityKaohsiungRepublic of China

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