Investments in China's clean energy and technology sector rises dramatically in Q2

Source:Cfbond 2018-10-12 21:31

By Xie Fang

Investments in China's clean energy and technology sector was on the rise during the second quarter of 2018, according to a report released by the world-leading accounting firm PwC on Thursday, the China Securities Journal reported.

The report says that there were 49 investment deals reached in the sector during the second quarter, with the overall investments jumping by 62 percent from the previous quarter to hit 642 million U.S. dollars.

According to the report, as investors began to pay more attention to the early stages of target companies or projects, investments in the A-round financing grew substantially during the quarter. Over the period, there were two A-round financing deals in the sector receiving more than 200 million yuan (28.89 million U.S. dollars) in investments.

During the second quarter, about half of the investments in China's clean energy and technology sector went into the environmental protection industry, making it the largest investment recipient among the industries within the sector, which was followed by the new energy vehicle (NVEs) industry which received 160 million U.S. dollars over the period.

Meanwhile, investment activities in the area of new materials also maintained a strong momentum with nine investment deals closed during the second quarter.

The report also reveals that a total of 38 mergers and acquisition (M&A) deals in China's clean energy and technology sector were disclosed during the quarter, with the total investments reaching 1.373 billion U.S. dollars, up by 13 percent on a quarterly basis.

What's more, two companies in the sector went public in the A-share market during the quarter, with their combined fundraising reaching 913 million U.S. dollars.