CVCA Study Mission to Shaanxi and Xi'an

"Isn't it a great pleasure should friends visit from afar," Mr. Wang Guolong, Deputy Director of the Bureau of Commerce of Shaanxi Province quoted this old Chinese saying to welcome CVCA's visit to Shaanxi Province and the City of Xi'an. The ancient city is indeed charming and the city under development is full of business opportunities. Through the past 30 years' sound and rapid development, Shaanxi has become a hot spot for investment. CVCA organized the "CVCA High Level Delegation Visit to Shaanxi and Xi'an" on Oct 22, 2010 (i.e. Thursday and Friday) to explore business opportunities and bring the latest business ideas to Shaanxi and Xi'an.

The CVCA delegation of over 20 members was headed by Mr. Xu Lixin, member of CVCA and founding partner of Mingli China Growth Fund and co-headed by Ms Qinyi, partner of Deloitte Consulting LLP. During the visit, the delegation conducted exchanges and communications with the government officials and outstanding enterprises in Shaanxi and Xi'an. The delegation members are senior managers of CVCA member companies, such as Apax Partners, Bain Capital LLC, Anying Investment, JAFCO Asia, Carlyle Group, Yun Yue Investment, SAIF, Honghu Capital, Haina, Gebi Partners and other famous foreign and domestic investment institutions.

As one of the six railway hubs and one of the four regional aviation hubs in China, Shaanxi ranks the first in terms of the railway operating length and expressway operating length in the western regions. The investment from SOEs amounts to over RMB 50 Bn annually and the demand for infrastructure construction is huge. In addition, Shaanxi is rich in natural resources and mineral resources. It has a sound industrial base and a competitive edge in new technologies, equipment manufacturing, energy, chemicals, fruit, farm produce and tourism.

During the visit, the delegation met and held discussion with the officials in charge of investment and finance, Reform and Development Commission, Bureau (Department) of Commerce, Bureau (Department) of Information and Industry, Finance Office, SASAC of Shaanxi Province and the city of Xi'an. The delegation also conducted exchanges with the New and High Tech Park, government FOF, major high tech and high growth companies and SOEs in Shaanxi.

Conversation with the Government "Adds Brilliance to the Present Splendor"

On the morning of Oct 22, CVCA held discussion with the officials from the Foreign Investment Department of the Bureau of Commerce of Shaanxi Province, the Finance Division of the provincial Reform and Development Commission, Capital Market Division of the Finance Office, Science and Technology Division of the Bureau of Science and Technology and the Development Planning Division of the SASAC of Shaanxi on the investment environment, policies incentives and launch of government FOF in Shaanxi. At present, there are over 300 VC/PE enterprises in Shaanxi with AUM of over RMB 3 Bn and individual investment of RMB 20 to 30 MM. As a pillar of economic development, VC/PE industry is a priority of Shaanxi. To introduce outstanding management teams and attract more VC/PE capital to Shaanxi requires support of CVCA and its members.

Welcoming remark by Mr. Wang Guolong, Deputy Director of the Bureau of Commerce of Shaanxi Province

Discussions between government officials of Shaanxi and CVCA members

Mr. Xu Lixin, head of the delegation made an introduction of CVCA and the delegation members to the officials

Mr. Xu Lixin sent a gift to Director Wang

Visit to the High and New Tech Parks and Enterprises in Xi'an

Xi'an is the flagship in the development in the west regions in China. Xi'an New and High Tech Industrial Development Park is among the first batch of state-level high and new tech parks approved by the State Council in March, 1991. During the 19 years since inception, the economic indicators of Xi'an New and High Tech Park have witnessed great improvement and the overall performance ranks among the top of the 56 state-level new and high tech parks. Xi'an New and High Tech Park has distinct advantages in promoting technological innovation and developing original property rights. In the Park, about 10000 research findings have been commercialized, among which over 90% own original property rights. Besides, the Park also ranks among the top in terms of the number of state-level industrial plans.

In the next five years, the Park is planning to develop a thousand Mu of land. In the first phase of the project, RMB 3 Bn will be invested to develop 300 Mu of land into a state-level digital media center that is the best in the western regions, in the whole country or even in the world and realize an annual output of over a million. In 2009, the creative industry in the Park reached an operating income of over RMB 10 Bn and 2015 enterprises in the creative industry have been set up or introduced into the Park. Among that, more than 300 renowned enterprises in industries such as news media, cell phone media and cartoon games have gathered in the Park. Based on the current plan, the Park will mobilize the new media resources in Shaanxi Province and joint hands with the leading digital media enterprises from home and abroad to establish Xi'an Digital Media Operating Co., Ltd. Besides, it will also utilize the strategic resources in the digital media industry such as content, editing, printing, circulation, technology, terminals and advertising, to develop into a state-level digital media center and an industry leader in the western regions.

A visit to the Xi'an New and High Tech Park

CVCA members marveled at the development of the Park

A visit to Xi'an Focus Light Science and Technology Co., Ltd

CVCA members held talks with entrepreneurs

Business Match Program

In the afternoon of Oct 22, Mr. Ding Zhen, Director of the Financial Service Office of the Administration Committee of the Xi'an New and High Tech Industrial Development Park, presided over the Xi'an new and high tech business match program. CVCA delegation members witnessed the passion and enthusiasm of the entrepreneurs and the care and support of the officials. Besides, CVCA delegation members also learned more about the industrial development and business operations in Shaanxi and Xi'an through the presentations.

Seminar on new and high tech projects

Presentations of the enterprises

Ms. Frances Huang, President of CVCA extended gratitude to the officials of the Park

Mr. Xu Lixin sent a gift to Mr. Ding Zhen, Director of the Financial Service Office of the Administration Committee of the Xi'an New and High Tech Industrial Development Park.

Throughout the visit to Shaanxi and Xi'an, CVCA delegation was warmly welcomed by the local government and enterprises. The one day event had a very clear theme and the visit to the enterprises and the Park was the highlight of the day. The delegation members not only had a chance to participate in the business match of the enterprises and get to know better about the investment environment and positioning of Xi'an, but also conducted communications with the officials of the Park and obtained information and policies on the development and human resource management of the Park. Both sides have established close ties and the visit was a great success.