Renminbi funds will soon be the favored fundraising and investment option in the Chinese venture capital and private equity market, according to a recent report from market researcher Zero2IPO Group.

The report showed that 24 renminbi funds were set up in the first half of the year and raised $1.13 billion worth of capital. The renminbi funds once again surpassed offshore funds in terms of the number of new funds, and accounted for 70.6 percent of the new funds raised in the first half.

According to Zero2IPO, the renminbi funds have started gaining ground since 2006. In 2008, the renminbi funds enjoyed an explosive surge, with 108 new funds set up in a year, surpassing offshore funds in terms of number for the first time. Renminbi funds raised about $23.7 billion in 2008, seven times more than it raised in 2007.