Latest Sign of China’s Slowdown: A Technology Cash Crunch [CNBC]
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Source: CNBC
HONG KONG — Wang Shidong and his two partners were still finishing graduate school two years ago when they raised $45 million in less than two months to start a venture capital fund. His wife, an elementary school teacher in their home village, was “terrified” that he got to manage so much money, Mr. Wang said. Things are different this year. After three months and visits with more than 90 potential investors all over China , Mr. Wang and his partners raised only $3 million for a second fund. In June they shut down the firm. Their fund, East Zhang Hangzhou Investment Management Ltd., was 1 of nearly 10,000 founded over the past three years amid a technology gold rush powered in part by China’s government-guided economic growth engine. Now they have become the latest sign that China’s engine is slowing down. Tomohiro Ohsumi | Bloomberg | Getty Images Many Chinese still believe their central government has the capacity to keep the economy fr
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