May 4th marked the official establishment of Lenovo Ventures Group (LCIG), the venture capital arm of Lenovo Group Ltd.

This is the fourth major investment institution established by Lenovo Group Ltd.

ANBOUND's research team is of the view that with the establishment of LCIG, the whole ecosystem of Lenovo will be more venture-centralized.

In recent years, despite their efforts, Lenovo Group Ltd failed in IT manufacturing sector.

Now, Lenovo Group Ltd has come up with its own investment platform and this can be seen as a move to prepare for the ultimate retreat from the manufacturing sector and moving forward to the investment sector.

From the perspective of enterprise, it is understandable as to why Lenovo decided to shift from real industry to investment sector; this is a strategic business move and it can be considered as fairly successful from financial point of view.

To certain extent, the development path of Lenovo is representative of the country’s enterprises and Lenovo is one of the classic examples of Chinese enterprises successfully shifting from real economy to virtual economy.