Unlisted Red-chip Enterprises' Return to Domestic Capital Market

Since the launch of the CHASDAQ and the restart of the IPO market, some "unlisted Red-chip enterprises" have begun to return to the domestic capital market. Furthermore, the SME GEM Boards of Shenzhen Stock Exchange have begun to develop as exit routes for Dollar funds.

In this situation, such topics as; the current situation and the trend of Dollar funds invested Red-chip enterprises, the unlisted Red-chip enterprises' return to the domestic market, and the pros/cons and risks caused by the return, and the policy barrier faced by the Red-chip enterprises in the process of return to the domestic capital market, are now receiving the VC/PE communities' attention.

Given these issues, on 24th, August 2010, CVCA, in partnership with the SZSE (Shenzhen Stock Exchange) Composite Research Institute, successfully launched a business seminar titled, "Unlisted Red-chip Enterprises' Return to the Domestic Capital Market". At this seminar, we were honored to have invited many veterans of the VC/PE communities to share and exchange ideas.

The Director of SZSE Composite Research Institute, Dr. Wang Yixuan, delivered an insightful speech on the features of VC/PE investment in the enterprises of GEM Board, focusing on the investment phases, the price earning ratio, and the appreciation rate. Dr. Wang Yixuan also shared her own ideas and posed a number of meaningful questions on this issue.

Following that, Mr. Guo Libo, the Director of the CVCA Public Policy and Research Department, made an introduction to the latest report by CVCA research team; Unlisted Red-chip Enterprises' Return to Domestic Market Survey and its guide book. The report covers hot issues such as the unlisted Red-chip enterprises' current situation, developing trends, and the challenges faced by them.

The two lecturers' speeches were delicate, practical, enlightening, and well received by the audience. The last session of the seminar was a colloquy; Mr. Guo Libo and Mr. Gong Jian and Ms. Wang Xiaojin had a fully engaging discussion with the capacity crowd.

Attendees from famous investment institutions such as IDG, KKR and iD Tech Venture joined the discussion. The seminar came to an end in a warm atmosphere around 5p.m.

The President of the China Venture Capital Association, Ms. Frances Huang said it was a great honor for CVCA to cooperate with SZSE on this seminar. CVCA hopes to offer information and data for the whole VC/PE community by conducting surveys on these hot issues, help investors to make sound decisions, and provide information to government agencies for policy formulation, thus expanding the exit routes for the VC/PE institutional investors.