CVCA Study Mission to Hangzhou

中文

In order to promote the development of private equity investment in hangzhou and help build up a regional investment management center, CVCA organized the "CVCA High Level Delegation Visit to Hangzhou on Mar 25, 2011 (Friday) to explore business opportunities and bring the latest business ideas to Hangzhou. Great thanks go to Hangzhou financial office for their great support to CVCA delegation during the trip.

Led by Mr. Hugo Xiong, governer of CVCA and founding partner of IDG., the delegation conducted exchanges and communications with the government officials and outstanding enterprises in Hangzhou. Senior executives of CVCA member companies participated in the trip, such as Apax Partners, DT Capital, CITIC Capital, The Carlyle Group, YR Delta, Baring PE, Mingly, SIG, Gobi Partners and other famous foreign and domestic investment institutions.

During the recent years, the development of private equity industy in Hangzhou is tremendous and impressive compared to other regions, Hangzhou will continuously enhance its effort in supporting local and international funds development during the twelfth five-year plan period, targeting to build up an intensive area of wealth management headquarters withsuperior operational environments, which will benefit a lot in the economic growth in Hangzhou.

During the visit, the delegation hold a productive dialogue with key local government officials from Hangzhou financial office, Hangzhou Municipal Economic Commission, Science and technology bureau, service industry office etc. The delegation also conducted exchanges with Head of financial officials from Hangzhou, Wenzhou, Jiaxing and Shaoxing and the biz-matching event went well under the friendly and relaxed environment.

Conversation with the Government

On the morning of March 25, CVCA held discussion with the officials from Hangzhou financial office, economy committee, science and technology bureau, service industry office on the topic of financial development, IPO and supportive PE policy in Hangzhou.

There are over 35 VC/PE enterprises which had been recorded in the Municipal Reform and Development Commission of Hangzhou with AUM of over RMB 3 billion and individual investment of RMB 0.2 billion. As a pillar of economic development, VC/PE industry is a priority of Hangzhou. To introduce outstanding management teams and attract more VC/PE capital to Hangzhou requires support of CVCA and its members.

Networking Lunch with Hangzhou Government and relative department officials

Business-matching with Hangzhou hi-tech, Head of financial officials from Hangzhou, Wenzhou, Jiaxing and Shaoxing and enterprises from Zhejiang Province

In the afternoon of March 25, chaired Mr. Liu xiaoping, managing partner of CITIC，CVCA held a Business-matching meeting with Hangzhou hi-tech, Head of financial officials from Hangzhou, Wenzhou, Jiaxing and Shaoxing and enterprises from Zhejiang Province.

Hangzhou is formulated into 3 state-level high flagship development zones which named xiasha, gaoxin and xiaoshan; and act in cooperation with 9 provincial-level high development zones such as jiangdong, linjiang, yuhang; also 57 distinguished industrial complements which will develop into wide range, multilevel and simultaneous development style; meanwhile, it designated 30 provincial-state level hi-tech Zones. For the year 2010, there are 19 new added IPO enterprises in hangzhou, 16 are processed in China while 3 are processed overseas. This year, two more IPO enterprises are added, the number reached to 35 in total. During the twelfth five year period, hangzhou initiatively attracting various PEVC funds, investing management institutions and local PE investing institutions.

During the twelfth five-year plan period, Wenzhou took an in-depth exploration on structure innovation of combining technology and finance, by combining those financing patterns such as guide fund, bank, guarantee system, risk compensation and patent right pledge; it may minimize the financing risk and build up the entire tech-financing system. Wenzhou hi-tech VC guide fund Will be established recently which will lead wenzhou developing hi-tech industry; meanwhile, Wenzhou will explore tech-guaranteed system, set up 1-2 tech-guaranteed companies; also will explore tech-insurance system, set up tech-insurance allowance and develop tech-insurance business; will explore pre-legal person tech-loan institution which may encourage 1-2 commercial banks to soft opening branch bank of technology; Complete intellectual property mortgage financing, expanding dimensions of mortgage financing; remit the bottleneck of financing for the technological enterprises. Provincial-level investment guide fund proposed AUM of over RMB 1 Bn which will be regulated by the market, using periodicity investing and follow-up investing; the initial investment proposed as RMB 0.2 Bn， including RMB 50 m from government and the other 0.15 Bn from public fundraising, it will mainly invest in the hi-tech enterprise in the field of biomedical and new energy.

Besides the rapid economy development, excellent ecology maintenance, harmonizing simultaneously rural-urban development, Huzhou also has a distinguished feature which is the convenient transportation, as well as the obvious location advantage. Huzhou is located in the central triangle area which is the essential area for shanghai, hangzhou and ningbo city, it also considered as the connecting point for north, south and mid-east part.

Jiaxing has a great investment environment and become the hot investing area for the entrepreneurs. Convenient transportation such as railway, highway and the cruise also is an advantage.

Shaoxing is one of the flagship investing cities in China which has convenient transportation. Shaoxing also has developed tele-communication system which could access any countries worldwide.

Throughout the visit to Hangzhou, CVCA delegation was warmly welcomed by the local government and enterprises. The one day event had a very clear theme and the visit and the business matching were very successful. The delegation members not only had a opportunities to participate in the business match of the enterprises and get to know better about the investment environment and develope orientation as well as the supportive investing policies & regulations of Hangzhou, but also had a warm communication with the officials of financial office and VC service center from Hangzhou, Wenzhou, Jiaxing and Shaoxing and enterprises from Zhejiang Province. CVCA also acquired the information of the hi-tech zone and the relative policies for attracting professional elites. Both sides have established close ties and the visit was a great success.