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Chinese venture capital giant HongShan is expanding internationally as China’s economy slows down. Neil Shen, the group’s founding partner and former head of Sequoia Capital in China, is seeking global business opportunities and investments to benefit HongShan’s Chinese portfolio companies. With $9bn to deploy, Shen aims to invest in foreign companies targeting the Chinese market or those founded by overseas Chinese entrepreneurs.
Shen has briefed HongShan’s limited partners on his plans, and a meeting with key investors in Shanghai is scheduled for next month. Despite the slowdown in China’s economy, HongShan remains focused on partnering with Chinese founders and supporting their globalization efforts. HongShan has also recently opened an office in Singapore and is exploring investment opportunities in Europe’s electric vehicle and battery market.
The split between HongShan and Sequoia Capital was triggered by rising tensions between the US and China and increased regulatory scrutiny of cross-border investment. Despite the ban on US investment in certain Chinese sectors, investors such as the California and Massachusetts pension funds continue to back HongShan.
Shen is actively pushing for HongShan’s portfolio companies to expand into overseas markets, emphasizing the company’s goal of taking China globally.
Additional reporting by Kaye Wiggins in Hong Kong
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