The Development of China’s Venture Capital Industry and the Characteristics of its Capital Spatial Configuration

This paper examines the development process of China’s venture capital industry and the characteristics of its capital spatial configuration. The results reveal that the development of China’s venture capital industry has its unique modality, which varies greatly from existing studies, namely, the desynchronized paces of industry development as well as the regional real capital supply and demand trend. More detailed observation shows the Chinese venture capital’s spatial configuration has three main characteristics: first, the separation of the registered location and the actual location of business operation; second, the division and spatial configuration of the venture fund’s capital circulation. To find the relevant factors related to the above phenomena, a correlation analysis was conducted between both market factors and non-market factors with the above capital spatial configuration. The analysis confirmed that besides the market factors, local legislative condition also presents a high correlation with the phenomena.