China's venture capital market warms: report

GUANGZHOU - China's venture capital (VC) market continued to improve after last year's retreat, with the number of deals signed growing in the second quarter.

Eighty-nine VC deals were disclosed during the April-June period, which was 20.3 percent more than the previous quarter, data provider ChinaVenture said in a report on Monday.

The amount of money involved in these deals, however, declined slightly to $492 million from the first quarter.

"China's VC market is slowly warming, and investments in early-stage companies are particularly active," said Feng Po, an analyst at ChinaVenture. "But the falling volume suggests investors remain cautious about their picks."

Internet enterprises accounted for the biggest share of VC deals made in the second quarter, with 21 investments disclosed, according to ChinaVenture.

Telecommunications topped in terms of investment volume. The industry saw VC deals worth $137 million reached in the April-June period, the data provider said.