China is improving the environment for venture investment, said Cheng Siwei, vice chairman of China's National People's Congress (NPC) Standing Committee, the nation's legislative body, Friday.

China is improving the legal environment for the development of venture investment, said Cheng at the opening ceremony of the seventh China venture investment forum held in Shenzhen, south China's Guangdong Province.

He said the NPC has already begun to discuss the Company Laws, which lower the standards for people to register and begin new companies. It also loosens restrictions on companies' investment in foreign countries.

Cheng said these are prone to the development of venture investment in China.

Forty small and medium enterprises (SME), half of them are new and high-tech companies, have successfully come into market with the financing from Shenzhen Stock Exchange's SME board.

He said this is conducive to forming a multi-level capital market in China, and also to the healthy development of the venture capital.

At the same time, China supports the development of venture investment in the educational field.

People's University will open the Ph.D. classes on the venture investment this year, and Cheng said he will be one of the tutors.

Venture investment has boosted China's SME development during the past years. The venture capital in China amounted 5.2 billion yuan (about 629 million US dollars) in 2004, 41.67 percent higher than 2003.