The financing transactions decreased by 14.4%, from 4,388 in 2021 to 3,755 in 2022.

According to Aurojyoti Bose, Lead Analyst at GlobalData, the sharp fall in venture capital funding value is a sign of the cautious mindset of the investors.

He continued that the average capital size of venture capital projects launched in China during 2022 decreased noticeably.

Regarding the number and value of venture capital investment deals, China is the largest Asian-Pacific market and one of the top four international markets. In 2022, it represented 14.1% and 13.6% of the total value and volume of VC funding worldwide.

However, out of the top four markets—the US, the UK, and India—China had the worst fall.

Other significant international markets, including the US, UK, and India, had a fall in VC funding value of 40.8%, 24.3%, and 38.2%, respectively, year over year, according to GlobalData.

However, the scene is completely different for the new energy and semiconductor industries, which are expected to be stand-out performers in 2023 after landing the biggest deals of 2022.

Investment in China’s new economy sector, made up of tech-driven industries, slipped 46% to 745 billion yuan (USD 110 billion) in 2022, according to market intelligence firm ITjuzi. Data from CB Insights shows a similar trend, with venture funding in the country down by more than half to USD 47 billion in 2022.

Big Tech companies, identified as major drivers of tech and internet funding in China, have been slowing down since the COVID outbreak. Tencent Holdings and ByteDance backed 93 and 21 companies in 2022, respectively, down significantly from the 259 and 64 deals they made in 2021, according to data compiled by local tech blog LeiNewspaper.

“The capital market was hesitant under the shadow of the pandemic,” ITjuzi analyst Zhi Jiaming informed the South China Morning Post.

A combination of China’s economic slowdown, COVID-19 restrictions that were only eased in 2022 December, and recent crackdowns on the tech sector have dampened investor confidence.

Beijing pledged in 2020 to prevent the “disorderly expansion of capital”, which was followed by two years of unprecedented regulatory crackdowns on the country’s biggest tech firms, covering business activities from content and data security to mergers and acquisitions.

However, the business environment is expected to improve in 2023. The Central Economic Work Conference, an annual meeting of China’s top leadership that concluded on December 16, 2022, said that the Xi Jinping government will look to internet platforms to play a role in reviving the country’s slowing economy.

The good news for investors in 2023 is “the ease of pandemic controls and Beijing’s vow to make economic development a priority. But the tech giants will continue to reduce their external investment this year, and it takes time for the economy to recover before investor confidence recovers,” ITjuzi senior analyst Wu Meimei said.

Wu Meimei also expects the tech start-up investments to revive in the 2023 second half.

The post China’s startup funding: Biggest victim of COVID, regulatory crackdowns appeared first on International Finance.

The newly expanded network by Cainiao in Singapore will comprise over 1,600 collection points, 600 couriers and 500 lockers island-wide.

The expansion has been carried out by Cainiao through partnerships with Singapore Post, BEST, Roadbull and Park N Parcel.

According to the logistics company, its expansion and digitalisation of its last mile network aims to support Singapore’s rapidly growing ecommerce industry that is contributing 200,000 parcels daily and worth $2.4 billion.

With regard to the expansion in Singapore, James Zhao, general manager of its global supply chain arm at Cainiao told the media, “The expansion of last mile network is an organic extension to deliver an end-to-end logistics service that provides greater stability and quality assurance to our customers in Singapore.”

“This is also part of our ongoing effort to support the Southeast Asia market by establishing win-win partnerships with local logistics partners. By driving the digital transformation of the entire industry, we are confident that logistics will continue to play an instrumental role in bolstering ecommerce growth in the region and serve as a key building block for the digital economy,” he added.

China-based smart supply chain solutions and logistics services giant BEST also expanded into Cambodia earlier this month, the media reported.

The expansion is a part of BEST’s plans to develop an efficient logistics network across Southeast Asia.

The China-based logistics company expanded in Thailand and Vietnam last year. This year, it also announced the launch of its operations in Malaysia and Singapore.

The post Cainiao, Alibaba’s logistic arm, to expand last mile network in Singapore appeared first on International Finance.

Besides Tencent, existing investors that also participated in the funding round for Shanghai Kyee Technology include DYEE Capital, Royal Sea Capital, Beijing Meihe Zhongbang Technology and Jiaxing Guangrun.

New investors such as Longmen Capital also joined the round.

The startup integrates modern technologies such as cloud computing and software-as-a-service (SaaS) to provide smart healthcare solutions to its customers.

Established in 2014, the startup claims to have served around over 13,000 medical institutions in China.

In the last couple of months, an increasing number of Chinese healthtech and biopharmaceutical startups have raised funding from prominent investors.

Most recently, China-based biotech firm Biocytogen has raised around $142 million in its Series D funding round led by CMB International, DealStreetAsia reported.

Other existing investors that also participated in the funding round for Biocytogen include SDIC Venture Capital, Chinese insurance group China Life’s equity investment arm China Life Investment Holding Company, healthcare-focused 3E Bioventures Capital, and Shenzhen-based Cowin Capital.

Earlier this month, another  Chinese biopharmaceutical company Waterstone Pharmaceuticals has secured around $61 million in its Series C funding round.

The funding round for Waterstone was led by SDIC JULI Investment Management.

The China-based healthcare company revealed in a statement other investors such as Shanghai-based Panxi Captial Management; YuanBio Venture Capital and Yichang state-owned Investment Group participated in the round.

Zhang Faming, founder and chairman of Waterstone, in the statement, “In the past decade, Waterstone started from scratch in Wuhan and gradually built its core competitiveness in [the field of] metabolic diseases, especially in developing kidney-specific macromolecule drugs ranging from the R&D of intermediates to enabling mass production.”

The post Tencent invests in Chinese healthtech firm Shanghai Kyee Technology appeared first on International Finance.

The funding round for Biocytogen was CMB International.

Other existing investors that also participated in the funding round for Biocytogen include SDIC Venture Capital, Chinese insurance group China Life’s equity investment arm China Life Investment Holding Company, healthcare-focused 3E Bioventures Capital, and Shenzhen-based Cowin Capital.

New investor Baifu Capital also participated in the funding round.

Yuelei Shen, chief executive officer at Biocytogen, said in the WeChat statement, “The fresh proceeds will be used to accelerate the project of [developing] fully-human antibodies using ‘mice models. We will ramp up efforts to work with more pharmaceutical companies in China and beyond, to facilitate the commercialisation of our drugs.”

The company raised $65.3 million in its Series C funding round in 2018. The funding round was also led by CMB International and SDIC Venture Capital.

Biocytogen is based in Beijing; however, the biotech firm has offices in Shanghai, Jiangsu and Boston in the US.

The preclinical-stage biotech company that aims to develop antibody drugs, claims to have served over 2,000 clients globally in 2019.

Earlier this month, China-based biopharmaceutical company Waterstone Pharmaceuticals secured around $61 million in its Series C funding round.

The funding round for Waterstone was led by SDIC JULI Investment Management.

The China-based healthcare company revealed in a statement other investors such as Shanghai-based Panxi Captial Management; YuanBio Venture Capital and Yichang state-owned Investment Group participated in the round.

The post China-based biotech firm Biocytogen secures $142 mn funding appeared first on International Finance.

The funding round for Waterstone was led by SDIC JULI Investment Management.

The China-based healthcare company revealed in a statement other investors such as Shanghai-based Panxi Captial Management; YuanBio Venture Capital and Yichang state-owned Investment Group participated in the round.

Zhang Faming, founder and chairman of Waterstone, in the statement, “In the past decade, Waterstone started from scratch in Wuhan and gradually built its core competitiveness in [the field of] metabolic diseases, especially in developing kidney-specific macromolecule drugs ranging from the R&D of intermediates to enabling mass production.”

“The proceeds from the investment will be used to increase the production of APIs of our major polymer drugs, and to speed up the global clinical development of innovative medicines.”

According to Waterstone, it is China’s largest supplier of intermediates used in the production of hyperkalemia and hyperphosphatemia drugs for multinational pharmaceutical firms.

Last week, another China-based clinical trial biopharmaceutical startup Adlai Nortye has secured around $100 mn in its Series C funding round.

The funding round was led by Hangzhou Tigermed Consulting and Shanghai-based asset manager Yingke PE.

Other investors that also participated in the funding round for Adlai Nortye include ATCG Holdings; ICBC Asset Management (Global) Company Limited, the overseas investment management arm of China’s ICBC Group; and several funds affiliated with Yingke PE.

During the same period, biopharmaceutical startup Sinovent also secured around $145 million in funding in it its Series C funding round. The funding round for Sinovent was led by Loyal Valley Innovation Capital.

The post Chinese biopharma firm Waterstone secures $61 mn funding appeared first on International Finance.

The funding round was led by Hangzhou Tigermed Consulting and Shanghai-based asset manager Yingke PE.

Other investors that also participated in the funding round for Adlai Nortye include ATCG Holdings; ICBC Asset Management (Global) Company Limited, the overseas investment management arm of China’s ICBC Group; and several funds affiliated with Yingke PE.

Adlai Nortye secured around $53 million in its Series B funding round in 2018.

Besides operating in China, the startup also has a R&D and clinical operation centre in New Jersey.

Another China-based healthcare startup Sinovent secured around $145 million in funding in it its Series C funding round earlier this month.

The funding round was led by Loyal Valley Innovation Capital.

Other investors that also participated in the funding round include Hong Kong-based investment manager Oceanpine Capital, CICC Qide Innovation Biopharmaceutical Equity Investment Fund and China’s Jiuyo Capital.

Sinovent is engaged in the technical development, consulting and services of biological medicines covering therapeutic areas like oncology, autoimmunity, infectious diseases and others.

Sinovent currently operates in Suzhou, Beijing, Shanghai, Boston in US and Sydney in Australia.

China’s Chengdu Easton Biopharmaceuticals is planning to raise around $193 million in its Star Market initial public offering (IPO), the media reported.

Easton is offering 30.09 million shares at $6.4 per share. According to media reports, its shares has been oversubscribed by 4473 shares.

Easton will use the funds raised in its IPO for clinical trials and development.

Last year, the company’s revenue stood at around $947 million.

The post Chinese biopharmaceutical Adlai Nortye secures $100 mn funding appeared first on International Finance.

Other investors such as IDG Capital and Wisdom Choice Global Fund also participated in the funding round for Waterdrop, which is known as Shuidihuzhu in China.

The funding round is reportedly the world’s largest financing round in the online insurtech industry in 2020 to date, Tech Asia reported.

Reportedly, Waterdrop will the funds to help the firm grow as well as incorporate partnerships with others in the healthcare ecosystem, from pharmaceutical companies and insurance businesses.

Peng Shen, founder and CEO of Waterdrop, in a statement, “We are excited about the huge growth potential that lies ahead of us. Our long-term goal is to become a leading online healthcare platform in China with an ecosystem that includes insurers, pharmaceutical companies, hospitals and drug stores, as well as nursing institutions and rehabilitation institutions. We are committed to not only helping users with financing issues but also providing them with integrated healthcare services along the way.”

The company has not revealed its valuation as of yet, however, according to media speculations, Waterdrop is valued at $2 billion.

Prior to this, Waterdrop raised around $252 million, including a $145 million Series C in June 2019.

In a report, Swiss Re said that insurance growth in China will be the strongest worldwide in 2020.

An analysis from a Swiss Re Institute report revealed that China’s insurance industry is performing robustly, with premium growth returning quickly to its pre-pandemic trend rate.

The post Chinese insurance company Waterdrop secures $230 mn funding appeared first on International Finance.

The cargo delivery service by Didi Chuxing will be available in Chengdu and Hangzhou and will start operating on June 23.

Customers will be able to place logistic orders through Didi Chuxing’s mobile application.

A spokesperson from Didi Chuxing told TechWeb that the company selected Chengdu and Hangzhou as the first two pilot cities after a comprehensive assessment based on user votes and driver registrations in various cities.

According to reports, the company has hired more than 20,000 drivers so far and recruitment and training are still underway. Didi Chuxing has also hired two logistics companies for the recruitment and training process.

Didi Chuxing’s intention to launch a freight delivery service were speculated a month ago, when it took out a job ad to hire van drivers in 10 Chinese cities.

Media reports also reveal that Didi has already invested $14 million as registered capital in two cargo delivery and packaging companies.

Didi Chuxing, which is  China’s largest ride-hailing platform, is doubling down on bike rentals, public bus services, and home delivery, seeking new growth engines in a more general mobility market.

Since the coronavirus pandemic, which originated in the Chinese city of Wuhan last year, the logistics and transportation sector has taken a severe hit.

Recently, Didi Chuxing said its ride-sharing orders in China this month has recovered to levels seen over the same period a year earlier.

Earlier in March, Didi launched an errand service called “Paotui,” in Chengdu and Hangzhou, promising to deliver everything from groceries, drinks, medicine, and even flowers within a city, with drivers from the firm’s dedicated service Didi Chauffeur as the first batch of errand runners.

The post China’s Didi Chuxing to launch cargo delivery service appeared first on International Finance.