(Yicai Global) Dec. 22 -- An increasing share of Chinese overseas graduates are repatriating back to China to found startups in a show of confidence in the world's second-largest economy.

The proportion coming home after studies abroad rose to 82.23 percent last year from 72.38 percent in 2012, representing the largest wave of graduate returnees in recent history, according to a 2012-17 report published by the Chinese Overseas Talent Exchange Conference.

Of those starting up businesses, 58.6 percent believe China has a good macro-economic environment; 54.2 percent are optimistic about their respective domestic markets; and 21.2 percent are positive about domestic investment and financing, the report showed.

Since the reform and opening up program kicked off in the late 1970s, China has rapidly developed its markets and cities, providing a huge customer base and human resources for returnees starting in business. Changes in demand for goods and services also allows those educated abroad to show off their know-how and ability, according to a researcher at Beijing's Capital University of Economics and Business.

About 74 percent of startup founders were born between 1985 and 1995, and they are mainly returnees. The report also shows that 70 percent of them chose to go into business in first-tier cities, internet and high-tech hubs, because of well-developed markets and technological strengths.

In terms of performance between 2012 and 2017, 65.5 percent of firms started by returnees are still growing; 32 percent have stabilized; and just 2.5 percent are struggling, the report reveals.

The Chinese Overseas Talent Exchange Conference was held in Guangzhou between Dec. 20 and 21.