CVCA Study Mission to Hubei

中文

After negotiating with the Hubei Provincial Department of Commerce and Wuhan Commercial Bureau regarding development of equity investment in Hubei Province, and to drive the PE and VC industry development in central China, CVCA recently organized a high-level study mission to Hubei. This mission sought to bring investment opportunities and new economic ideas to Hubei and Wuhan in particular.

CVCA organized the “CVCA Study Mission to Hubei” on December 7, 2011, led by Mr. Zhao Chengning, Managing Director of FountainVest Partners. During the conference with Hubei government departments, including the Hubei Commerce Department, Hubei Development and Reform Commission, Hubei State-Owned Assets Supervision and Administration Commission and CBRC Hubei Bureau, CVCA members discussed the investment environment in Hubei with officials led by led by Mr. Tan Zuogang, Vice Director of Hubei Province Foreign Capital Management Committee, and Mr. Yang Benchu, Director of Investment Promotion Department of Hubei Provincial Department of Commerce. Additionally, the delegation exchanged views about the PE Fund development strategy in Hubei Province with related officials and enterprise representatives.

All the members that participated in the Hubei trip were senior executives from CVCA member companies, including FountainVest Partners, Goldman Sachs, SAIF, TPG, KKR, CDIB, Hony Capital, APAX, Legend Capital, DT Capital, Troutman Sanders LLP, Ernst & Young and other well known foreign and domestic investment institutions.

Government Forum:

On the morning of December 7th, a government forum was held, and both the CVCA delegation and Hubei government departments were involved, including the Investment Promotion Department of Hubei Provincial Department of Commerce, Hubei Development and Reform Commission, Wuhan Commerce Bureau and Wuhan East Lake New Technology Development Zone Management Committee. The forum was moderated by Mr. Tan Zuogang. Mr. Tan introduced the participants of Hubei government to the delegation and Mr. Zhao Chengning, Managing Director of FountainVest Partners, made a brief introduction of CVCA and the delegation members.

Mr. Tan Zuogang introduced the development in Hubei in recent years, especially the new regional development base on the “Two Laps Around” policy, which covers the Wuhan Cities Circle, Western Hubei Culture Tourism Circle and the Yangtze River Economic Belt. Mr. Guo Bin, Director of the Eighth Secretariat of the Provincial Government Office, representing Hubei Provincial government, introduced the PE/VC industry in Hubei in recent years.

As the biggest transportation junction in central China, Hubei is in the middle of China geographically, and Wuhan as the only major city of this region, location has great advantages. Additionally, Hubei is rich with natural resources, good environment for ecological tourism, with many minorities, and lots of top colleges. Based on the state policy to support west and central China, the VC/PE industry in Hubei has developed rapidly and many enterprises urgently need financing.

Subsequently, Mr. Zhao Wei, researcher from the Financial Trade Department of Hubei Development and Reform Commission; Mr. Zhang Shunlai, Director of the Property Management Office of Hubei SASAC; Mr. Huang Chao, Director of Policy and Regulation Office of CBRC Hubei Bureau; Ms. Fu Yan, Director of Wuhan Finance Office; Mr. Liu Qingjiang, Deputy Director of Wuhan East Lake New Technology Development Zone, introduced the challenges and opportunities in Hubei and Wuhan from their own perspectives.

Enterprises matching:

An enterprise matching section closely followed. CVCA Hubei Study Mission met and discussed further development and financing with Ferguson (Wuhan) biological technology Co., LTD, Hubei Fuhan Wood Industry (Group) Development Co., LTD, Wuhan Metro Group, Wuhan State-Owned Assets Management Company and Wuhan Economic Development Investment Group amongst others..

Mr. Yang Benchu, Director of Investment Promotion Department of Hubei Provincial Department of Commerce, hosted the enterprise matching. Firstly, Mr. Yang introduced the enterprises involved in this matching section, all of which are fast growing, high potential enterprises. Mr. Zhao Chenning, Managing Director of FountainVest Partners, introduced CVCA and the delegation members to the participants, and showed great interest in the present enterprises.

During the following speech, Mr. Brandon Lin, Partner from SAIF, and Mr. Jerry Liu, VP from FountainVest Partners, gave speeches on “Value-added Services and Business procedure which VC/PE has brought to Hubei/Wuhan” from their own practice and experience. Ms. Wanlin Liu and Mr. Edward Epstein from the CVCA delegation also shared their ideas with participants according to the questions from the present enterprises.

In the last section of the meeting, representatives from Bluestar Techonology, Ferguson (Wuhan) Biological Technology, and Wuhan Pointrole Information Technology introduced their own situations, development targets, and expressed their financing objectives.

Development Zone Visit

On the afternoon of December 7, CVCA Hubei Study Mission visited Optics Valley of China - Wuhan East Lake New Technology Development Zone. As the first national optoelectronic industry base, with Optical Valley Software Park, Biolake, and various industries including; service outsourcing, animation, financial service, network communication software, informational software, embedded software, geographical services and IT education, Optics Valley is a paradise for entrepreneurs.

In Wuhan East Lake New Technology Development Zone, the delegation visited Wuhan Optical United Property Right Exchange, Optical Valley Software Park and Biolake. Mr. Gong Bo, General Manager of Wuhan Optical United Property Right Exchange, warmly welcomed the CVCA delegation, and presented how the trading center provides all types of property right and science and technology achievements with facilities and information release services. It also fulfills perform property transactions, verification functions, and private company shares trusteeship. He invited the delegation to visit Hubei again and bring investment to Wuhan.

The delegation showed great interest in Wuhan East Lake New Technology Development Zone, paying great attention to the function of the Development Zone and introduction of the high-tech enterprises. They were all interested in the high-tech financing and looked forward to mutually beneficial cooperation.

As a national PE and VC association, CVCA contributes to the development of the PE and VC industries in greater China. In the future, CVCA will enhance its communication with mid-west China, and encourage investment and finance in the west and mid-west in order to promote the economic development of the greater China region.