Market Insights Financial Capital Raising

Traditional Capital Raising - China

China

The country in China is projected to reach a Total Capital Raised of US$78.41bn in the Traditional Capital Raising market market by 2024.
Venture Capital is expected to dominate the market with a projected volume of US$68.68bn in 2024.
In global comparison, the United States is anticipated to generate the highest Capital Raised amount of US$159,000.0m in 2024.
In China, the Traditional Capital Raising market is witnessing a resurgence in interest from local investors seeking stable long-term investment opportunities.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

The Traditional Capital Raising market in China has been experiencing significant growth and development in recent years.

Customer preferences: Chinese investors have traditionally favored traditional capital raising methods such as bank loans and private equity investments. However, there has been a shift in customer preferences towards alternative forms of capital raising, such as crowdfunding and peer-to-peer lending platforms. This shift can be attributed to several factors, including increased access to technology and the desire for greater control and transparency in investment decisions.

Trends in the market: One of the key trends in the Traditional Capital Raising market in China is the rise of crowdfunding platforms. These platforms allow individuals and businesses to raise capital from a large number of investors, often through small contributions. This has democratized the capital raising process and provided opportunities for smaller businesses and entrepreneurs who may have previously struggled to secure funding through traditional channels. Another trend in the market is the growing popularity of peer-to-peer lending platforms. These platforms connect borrowers directly with lenders, cutting out traditional financial intermediaries such as banks. This has provided an alternative source of financing for individuals and businesses, particularly those who may not meet the strict lending criteria of traditional financial institutions.

Local special circumstances: China's large population and rapidly growing middle class have contributed to the growth of the Traditional Capital Raising market. With more individuals and businesses seeking financing options, there is a greater demand for alternative capital raising methods. Additionally, the Chinese government has been supportive of the development of these platforms, recognizing their potential to drive economic growth and innovation.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Traditional Capital Raising market in China. The country's rapid economic growth and urbanization have created a favorable environment for investment and entrepreneurship. Additionally, the government's efforts to promote innovation and technological advancement have encouraged the development of alternative capital raising platforms. In conclusion, the Traditional Capital Raising market in China is experiencing significant growth and development, driven by changing customer preferences, technological advancements, and favorable macroeconomic factors. The rise of crowdfunding and peer-to-peer lending platforms has provided individuals and businesses with alternative sources of financing, while China's large population and supportive government policies have created a favorable environment for the growth of these platforms.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.