The trend of wealthy Chinese investors parking their capital in Canadian real estate and commodity investments is now very much including the Canadian technology sector. The technology sectors that appear to have the largest advantage in entering the Chinese market include Information, Communication & Technology, Medical Devices, Cleantech, and Advanced Manufacturing.
Chinese investors expanding their portfolios to include Canadian technology companies does not only have to do with avoiding the risks in their home economy but also because buying into the innovation that Canadian technology firms produce represent an additional, enormous return potential. With the second largest economy in the world, this return potential stems from the extra value the Chinese can offer by helping their investees expand their market share throughout their home country. Chinese Private Equity investors can usually do this by utilizing their network of distribution channels throughout China, as well as offering a means to navigate the complex issues of cultural adoption, government regulations and avoiding copyright infringement.
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