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Funding for China's private equity market falls by a third

Private capital investment in China slowed markedly in the first half of the year, data from the Emerging Market Private Equity Association released Tuesday showed.

By the numbers: Capital invested in China's private markets fell from $15.1 billion in the first half of 2018 to $9.8 billion through June 2019, with deal count across all transaction types in the country declining from 582 to 322 over the same period.

The big picture: Emerging markets broadly have suffered, with private equity and venture capital seeing declines of 10% and 32%, respectively, in the period through June, compared to 2018.

  • However, the decline "was expected," EMPEA said in a release, "given the sheer amount of capital raised in 2018, particularly in Emerging Asia and Latin America."

But, but, but: The trade group representing EM institutional investors, fund managers and industry advisors also cautioned that the "slowdown in private capital investment activity in the first half of 2019 was more pronounced amid rising trade tensions between major economies and a more uncertain global economic outlook."

Go deeper: The world is increasing its investment in Chinese markets