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stood at USD 1.72 billion, witnessing some increase compared with
USD 1.27 billion in 2010, but this was mainly because of the overall
rapid development of the VC/PE market from 2010 to 2011. In fact,
the clean technology industry accounts for 4.25 per cent in all areas
of investment, a decline from 8 per cent in 2010.11 In the clean energy
industry, there are only three disclosed financing cases in the first half
of 2012 with a total financing of USD 28.7 million, a sharp year-on-year
decrease of 81 per cent and 95 per cent, respectively, in terms of both
number of cases and financing amount.12
In the stock market, only four companies went public in the
domestic capital market in 2011, raising USD 3.68 billion. Although
there were fewer companies which got listed compared with 2010
(seven companies got listed), the scale of financing has increased
by 41 per cent.13 Since 2012, some clean technology industries have
not been optimistic in the capital markets as a result of production
overcapacity, shrinking international market, and other factors.
According to statistics from China Venture, in the first half of 2012,
a total of five enterprises in the clean energy industry succeeded in
initial public offering (IPO) in the global capital market with a total
financing amount of USD 99,800,000, a year-on-year sharp decrease of
17 per cent and 65 per cent, respectively, in terms of both number of
cases and financing amount. At the same time, it frequently occurs that
the IPO of new energy enterprises, especially solar energy companies,
get stranded.14
As it is true for corporate bonds, enterprises in the low carbon
industry are often in infancy in terms of development of a business or
an industry and there are high uncertainties and risks on investment
returns. Local governments should support local green enterprises to
go public and support financing modes such as local private equity.
Success of the enterprise in going public will not only improve
corporate profitability and generate additional fiscal revenue for local
governments, but also generate a certain degree of substitution effect
and save a certain degree of local government expenditures in the field
of low carbon economy.
11 Qingke Research Center, China Venture Capital Annual Report Summary
(VC and PE, 2010 and 2011). Available athttp://www.zero2ipogroup.com/
research/report.aspx
12 ChinaVenture.Availablefromhttp://report.chinaventure.com.cn/r/f/606.aspx
13 Qingke Research Center, 2012.2011 Annual Research Reporton IPO of
Chinese Enterprises. Available at http://www.zero2ipogroup.com/research/
reportdetails.aspx?r=97ca0fd5-a904-426c-b217-7148682bbf2c
14 ChinaVenture.Availablefromhttp://report.chinaventure.com.cn/r/f/606.aspx
120 Low Carbon Development in China and India
USD 1.27 billion in 2010, but this was mainly because of the overall
rapid development of the VC/PE market from 2010 to 2011. In fact,
the clean technology industry accounts for 4.25 per cent in all areas
of investment, a decline from 8 per cent in 2010.11 In the clean energy
industry, there are only three disclosed financing cases in the first half
of 2012 with a total financing of USD 28.7 million, a sharp year-on-year
decrease of 81 per cent and 95 per cent, respectively, in terms of both
number of cases and financing amount.12
In the stock market, only four companies went public in the
domestic capital market in 2011, raising USD 3.68 billion. Although
there were fewer companies which got listed compared with 2010
(seven companies got listed), the scale of financing has increased
by 41 per cent.13 Since 2012, some clean technology industries have
not been optimistic in the capital markets as a result of production
overcapacity, shrinking international market, and other factors.
According to statistics from China Venture, in the first half of 2012,
a total of five enterprises in the clean energy industry succeeded in
initial public offering (IPO) in the global capital market with a total
financing amount of USD 99,800,000, a year-on-year sharp decrease of
17 per cent and 65 per cent, respectively, in terms of both number of
cases and financing amount. At the same time, it frequently occurs that
the IPO of new energy enterprises, especially solar energy companies,
get stranded.14
As it is true for corporate bonds, enterprises in the low carbon
industry are often in infancy in terms of development of a business or
an industry and there are high uncertainties and risks on investment
returns. Local governments should support local green enterprises to
go public and support financing modes such as local private equity.
Success of the enterprise in going public will not only improve
corporate profitability and generate additional fiscal revenue for local
governments, but also generate a certain degree of substitution effect
and save a certain degree of local government expenditures in the field
of low carbon economy.
11 Qingke Research Center, China Venture Capital Annual Report Summary
(VC and PE, 2010 and 2011). Available athttp://www.zero2ipogroup.com/
research/report.aspx
12 ChinaVenture.Availablefromhttp://report.chinaventure.com.cn/r/f/606.aspx
13 Qingke Research Center, 2012.2011 Annual Research Reporton IPO of
Chinese Enterprises. Available at http://www.zero2ipogroup.com/research/
reportdetails.aspx?r=97ca0fd5-a904-426c-b217-7148682bbf2c
14 ChinaVenture.Availablefromhttp://report.chinaventure.com.cn/r/f/606.aspx
120 Low Carbon Development in China and India
