FUNDING LIKELY TO REMAIN STATE-LED
The tighter oversight is also expected to influence how Chinese companies raise money.
Industry observers say firms will need to account for longer approval timelines, greater transparency requirements and more complex reporting obligations when planning overseas deals.
With private capital harder to come by and foreign investors becoming more cautious, analysts say many startups are likely to continue relying on government-backed funds.
“For the foreseeable future, that’s going to be a very major part of how Chinese companies, startups, innovative startups, get funded,” said Tech Buzz China’s Ma.
Government-linked funding also offers more than capital, she said, providing companies with credibility, connections and access to strategic resources within China.
“You have to care a lot about the strategic resources you can corral for yourself inside mainland China, and local government funds are one of them,” Ma added.