About KPMG China
KPMG China has offices located in 31 cities with over 15,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities.
KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
In 1992, KPMG became the first international accounting network to be granted a joint venture license in the Chinese Mainland. KPMG was also the first among the Big Four in the Chinese Mainland to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong firm can trace its origins to 1945. This early commitment to this market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in KPMG’s appointment for multidisciplinary services (including audit, tax and advisory) by some of China’s most prestigious companies.
China dominated VC megadeals in Asia-Pacific in Q1 2022, finds KPMG
Chinese companies accounted for five of the top 10 VC deals in the quarter, with deals focused on government’s priority tech sectors
Chinese companies accounted for five of the top 10 VC deals in the quarter...
22 April 2022, Hong Kong ─ The level of venture capital (VC) investment in Asia remained relatively solid in Q1 2022 compared to historical norms – in part due to the number of US$100 million+ megadeals seen across the region, according to KPMG’s latest Venture Pulse Q1 2022 report. A number of Asian jurisdictions attracted US$500 million+ funding rounds in Asia, the report highlighted, showcasing the growing strength of the region as a whole.
Total venture financing in the region reached US$32.6 billion across 2,712 deals during the period, 21.8% lower compared with the first quarter of 2021. The decline was attributed to ongoing global geopolitical uncertainty, the COVID-19 Omicron wave, increasing market volatility, and continued regulatory changes in China. Despite the lower cumulative value of deals, wide range of sectors attracted fresh investments, including EdTech, food delivery, HealthTech, and B2B services. The region also saw relatively healthy exit rates in the first quarter with close to US$80 billion in exit value, heralding a strong start to the year.
Chinese companies dominated the VC landscape in Asia-Pacific during the first quarter of the year, accounting for five of the top 10 deals. Some of the megadeals involving Chinese companies included US$800 million series B funding for Suqian-based JD Property (China) and US$784 million series B funding for Chongqing-based Changan New Energy Vehicles Technology.
Egidio Zarrella, Partner, Clients and Innovation, KPMG China, says:
China continues to signal its long-term commitment to building its technology ecosystem–in particular in areas deemed to be of strategic importance to overall economic growth. VC firms are increasingly aligning with these strategic initiatives, allocating additional funds into building out localised supply chains for everything from electric vehicles to semiconductor production.
Allen Lu, Partner and Head of TMT Audit of KPMG China, says:
Over the past quarter, electric vehicle companies and technologies attracted significant funding in China – both from corporates and from traditional VC firms. This is a space that will likely continue to attract attention and investment as it aligns very well with the central government’s priorities, which is to boost the economy and drive employment.
While China dominated megadeals, the country’s total level of VC investment during the quarter was impacted by the Omicron wave of COVID-19 as well as the seasonal slowdown during the Lunar New Year holiday period. Looking ahead to the rest of 2022 and beyond, KPMG believes the VC ecosystem in China and the rest of Asia Pacific will fully rebound from recent pandemic-driven declines, with significant market opportunities opening up as countries invest more heavily in reshoring of domestic supply chains.
Irene Chu, Partner, Head of New Economy and Life Sciences, Hong Kong Region, KPMG China, KPMG China, says:
The Omicron wave of COVID-19 and associated control measures continue to impact markets across Hong Kong SAR and Mainland China. While interest in deals remains strong, particularly in areas that align with the country's priority technology focus areas, valuations may be temporarily impacted until the pandemic situation shows signs of improvement.