China is about to put into effect new guidelines for venture capital and private equity. The rules, contained in Circular 57, define areas of investment that are preferred, restricted and prohibited, maintaining the overall goal of steering capital toward building high-tech industries in China. Circular 57 will go into effect on December 1, 2007, replacing guidelines that had been in effect since 2004. As detailed by a report issued by Zero2IPO, the new rules modify the preferred/prohibited areas of investment, without changing the fundamental underlying policy.  We look at how biotech is affected...