Financial Group Work 1 Coursework Example | Topics and Well Written Essays - 750 words

Financial Group Work 1 - Coursework Example menace capital is really significant in job creation and also as an innovation tool within geographic area or an economic sector.Before 1985, China had no venture capital activities on board, only if in the following years it succeeded in fostering a venture capital industry through government funded initiatives. Due to Chinas ambitions to cultivate a more innovative economy, Chinas State Science and Technology Commission in 1985 developed the China New Technology Venture Capital Investment Corporation (CNTVI) which was the first VC firm to operate in China. Although investment activities geared up in 1990s, in 1980s several other government funded VC firms had joined the grocery (Zhang 35).Tax benefits were go under in place (early 1990s) to incentivize investment in VC in young Small to Medium sized Enterprises (SMEs). By creating state operated and funded VC firms, several provinces started to participate in VC markets (by early 199 0s). There was a major shift in VC policy in 1998 after CNTVI was shut down because it failight-emitting diode to commercialize development and research projects and was replaced by the designing Fund for Small and Medium Technology-based Enterprises (Innofund) which was one of the first hybrid VC funds. Though Innofund had no much impact, it led to the rise of additional hybrid VC in the following years (Zhang 76).By the start of mid-2000s, increased VC market participation among several other implemented policies like encouraging foreign investment and diversifying VC sources were very successful. In 2010 total VC investment was 30 times greater than that of 1999 (Zhang 154). Some of the current Chinese economic policies intromitIn the late 1980s, the first generation of VC began its operations and the movement gained momentum in 1990s. As the shape of start-up companies expanded, the international