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Venture capital value remains slow at $10.1bn on 484 deals in Asia: KPMG

Tuesday, August 20, 2019

Laxman Pai, Opalesque Asia:

In Q2 2019 venture capital (VC)-backed companies in the Asia region raised $10.1bn across 484 deals, says KPMG.

Overall deal value and volume remained low during Q2 2019 in Asia, well off last year's record pace, the KPMG report 'Venture Pulse' said.

The sluggish performance reflects the continued absence of significant numbers of $100m+ megadeals in China for the second consecutive quarter. The continued slowdown in deal-making in China likely reflects the ongoing US-China trade dispute and a corresponding increase in investors caution.

The first two quarters of 2019 saw a large drop in VC activity in Asia, both in terms of the number of deals and total deal value.

China's share of megadeals, in particular, has fallen significantly over the past few quarters. At the end of Q2 2019, the largest ten deals in Asia accounted for $4bn in investment. By comparison, in Q4 2018, the ten largest deals accounted for $11bn.

Hong Kong attracts more investments

In 2018, the Hong Kong Stock Exchange (HKSE) changed its listing rules to allow dual-class shares.

The aim was to attract more technology firms, a fact that is starting to bear fruit. Alibaba Group is reportedly planning to raise approximately $20bn through the second listing in Hong Kong. This move, currently expected in Q3 2019, could help spur additional activity on the HKSE.

Following Hong Kong's record year of IPOs in 2018, the level of I......................

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