Over 88% of LPs will increase their capital allocation to China within the next five years. An 1% increase in allocation will bring the equivalent of Euro 1.5 billion fresh European capital to China.

Our quarterly newsletter, Reflections, discuss in this issue key trends related to China private equity investment. See what Chinese GPs are doing.

154m Chinese have an annual income over €5600 and spend an average of €5.4 per year in this industry compared to €120 in Europe, €33 in Taiwan, and €32 in Korea. This middle class population is estimated to increase to 630m by 2020.

Epiven has calculated that more than 75% of FDI in China for the past 15 years was from Overseas Chinese investors. Their successes can be attributed to how they perceive risk and opportunity when selecting and managing an investment in China.

Starting in 2008, Epiven is surveying PE funds. The survey will close in October 2009 and a report will be published in 2010.