This translates to $74.8b of the $207.8b investment volumes.
Chinese tech cities have risen rapidly on the global stage accounting for 36% or $74.8b of the $207.8b global venture capital (VC) investment volumes in 2018, according to the Savills Tech Cities index.
The index, which measured 30 cities across the globe on 100 individual metrics, found that Chinese tech cities accounted for a higher share of VC investment than their US counterparts which saw their share of volumes drop from 40% to 28% between 2012 and 2018.
Whilst Beijing was the second ranking Chinese tech city and placed 17th globally, the report highlighted that the city receives the greatest VC investment with an average of $34b per annum in the last three years. This is much higher than the volumes New York and San Francisco receive, which clinched the top two spots as the world’s premier tech cities.
Shanghai which is regarded as China’s premier tech city placed 15th out of the 30 countries measured by the index on the back of its international business environment and better quality of life for its residents, the report noted.
“Elsewhere, Shenzhen, an exceptionally youthful city, benefits from strengthening links with Hong Kong and a new tech-stock exchange ChiNext,” Savills said in its report. “Hangzhou, home to Alibaba, stands out as a lower cost smaller city with a population of 9.5 million, famed for its West Lake UNESCO World Heritage site.”
Meanwhile, Chinese cities also emerged as leaders in shared mobility services, the report added, with Beijing, Shanghai, Hangzhou and Shenzhen ranking amongst the top ten cities in this aspect. The four cities, as well as Hong Kong and Chengdu, were also included amongst the top ten cities with the best metro system.
The report further pointed out how many of the dockless bikeshare schemes in cities across the world originated in China, with Hangzhou home to more shared bikes than in any other city globally.
“Tapping into a vast, internet-enabled domestic market, they have risen fast and thanks to integrated payment systems, revolutionised the way business is conducted in the country,” Savills said.
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