WENZHOU, Zhejiang - Entrepreneurs in Wenzhou may have earned their profits applying traditional investment methods in the nation's property and commodity markets, but individual investors have realized that they should look at developing industries, such as renewable power, to seek better opportunities.

That was the message from the Second China Private Capital Summit 2011, held in Wenzhou on Friday

One year after the release of a document by the State Council that aimed to encourage and guide private investment and expand the scope of investment and the coverage of private capital, the real estate market is no longer the main focus after the nation's tightening policy took effect. Instead, investors have transferred to the venture capital and private equity markets.

New investment methods, including venture capital and private equity in the high-technology industries, became the hottest topic among the 200 economists and more than 1,500 participants at the summit.

"Venture capital and private equity will potentially replace the real estate market as the top choice for Wenzhou's business people who are keen on making money from long-term investments," said Li Wuwei, vice-chairman of the Chinese People's Political Consultative Conference at the opening ceremony.

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Venture capital and private equity have been recognized as promising investment methods in China since 2006, when a number of investment companies shifted their focus from the real estate market to the booming markets.

"We aim to offer better opportunities for investors with controllable risks and ensure they have the most reasonable returns in a short period by having experts choose suitable enterprises for the individual clients," said Liao Zijun, the founder of Junsan Capital Management Co Ltd.

Currently, a total of more than 12 trillion yuan ($1.76 trillion) of private capital exists in the nation, with more than 600 billion yuan coming from Wenzhou, a city with a population of 8 million.

"Wenzhou will pay more attention to making more private venture-capital investments in innovative fields, such as renewable energy, to improve the economic restructuring of the city as a key goal of the 12th Five-Year Plan," said Zhao Yide, mayor of Wenzhou city at the summit's opening ceremony.