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Hainan sees $355m venture capital investment assets in 2021

ehainan.gov.cn | Updated: 2022-01-14

According to the Hainan Provincial Development and Reform Commission, Hainan had eight newly registered venture capital enterprises in 2021 with total assets of 2.26 billion yuan ($355.14 million), which is 180 times more than the figures recorded at the end of 2020. The number and total assets of newly registered venture capital enterprises ranked fifth in China, and set a record high for the tropical island.


An aerial view of Haikou, the capital of Hainan province. [Photo/VCG]

A catalogue of encouraged industries for the Hainan Free Trade Port was issued by the National Development and Reform Commission in January 2021, and included venture capital investment as one of the industries entitled to a preferential 15 percent corporate income tax rate as well as a preferential 15 percent personal income tax rate for individuals with high-level and in-demand expertise.

In the past year, the Hainan FTP is becoming a new highland for venture capital enterprises to register and invest. There are 11 projects backed by the eight newly registered venture capital enterprises, mainly in the manufacturing, software, network, and new materials industries.

In September 2021, guidelines for venture capital investment management were issued in order to improve services for those enterprises such as simplifying the registration process, shortening approval times, improving consulting services, and reducing operating costs.