China's venture capital investment grew 12.9 percent year-on-year in the first quarter, thanks to booming investment in medical and health-care sectors, a Beijing-based investment consulting firm said yesterday.

The 73 venture capital investment deals completed in China in the period had a combined value of US$585 million. The average deal size was US$8.02 million, up 11.3 percent, according to ChinaVenture.

"Since the fourth quarter of 2007, the health-care sector has been much chased by investors while the once-popular Internet service sector has seen a shrinking number of deals," ChinaVenture said in a statement.

In the first quarter, seven deals in the health-care industry were completed with a total value of US$83.99 million.

Granite Global Ventures announced last month it would expand latest funds by 50 percent to US$600 million.

GGV also intends to push a health-care firm it invested in for a listing on China's Nasdaq-like growth market, which is expected to open as early as next month in Shenzhen.

The firm called Summit Lifescience, a Guangzhou-based medical materials and device provider, has canceled its plan for an initial public offering overseas and instead will launch the IPO in the new growth market in Shenzhen, according to GGV.

In the first quarter, the private equity investment in China reached US$2.31 billion, mainly in real property, logistics and energy sectors, ChinaVenture said yesterday.

"Though the house market is influenced by the regulatory control, it's also one of the most profitable industries here," ChinaVenture said.

(Shanghai Daily April 8, 2008)