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Over the years, China has emerged as a preferred destination for global private equity investors. During the early 1980s, the Chinese government had made efforts to nurture this concept but failed owing to pitfalls in policies and scarcity of resources. The China New Technology Start-up Investment Company, the earliest private equity firm in China, was founded in 1986 and functioned as a central government agency to give a boost to private equity in China. However, this venture went bankrupt in 1997. Such failures led to the formulation of the tentative regulations on venture capital in China in 2001. These rules were however modified in 2003 in order to improve the sluggish flow of global capital. Private equity capital was administered in sectors like information technology, the semiconductor industry, biotechnology and even in banking after the relaxation of banking norms in 2003. However, global private equity players took a cautious approach due to the lack of transparency in the accounting practices of companies, underdeveloped stock exchanges and stringent regulatory norms for foreign listing. This case study offers scope for discussion on the private equity investment in China with the main emphasis on the sectors stated earlier, and also speaks of the plans undertaken by the global private equity players like Carlyle Group, Newbridge Capital, Walden International, Warburg Pincus and Goldman Sachs. The case also throws light on the success stories of global players with respect to investments in Semiconductor Manufacturing International Corp, Shanda Networking, Mengnui Diary, Sohu.com and SinaCorp.