economy - VC's have a tough life

Investments by venture capital firms in China has gone down, the Financial Times reports based on a to-be released report by Ernst and Young.
Despite some high-profile successes in the past few months, VC's are reducing their influx of capital into the booming Chinese economy, the report says.
The report blames new regulations by the State Administation for Foreign Exchange (SAFE) for a slowdown or even a possible reversal of VC-capital. But despite their often high-profile in the media, VC's had a fairly limited influence on China. Domestic VC's hardly exist and foreign VC's would provide capital that would look like a trickle compared to for example mergers and acquisitions.