China has always been a destination for substantial foreign investment , and foreign investment has traditionally been one of the troika of China's economic development. Although the super-national treatment once granted to foreign investors has been substantially curtailed, foreign institutions are still driven to enter China to participate in various investment and cooperation activities due to the China's advantages as the second largest economy and entrepreneurial country in the world, second only to the United States, the rise of domestic new economy companies (including the Chinese Internet giants that have expanded into global markets ), the emergence of new forms of investment (such as private equity / securities funds, mezzanine funds, non-performing asset funds, private equity secondary funds and asset-backed securitization), the difference between domestic and foreign costs of capital, the differences in capital market valuations and market factors, such as the need to cooperate between Chinese and foreign enterprises with respect to specialized technology, industry resources and institutional branding.
