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VC/PE Leaders Gathered at 2009 China Venture Capital Association Annual General Meeting China Opportunities and Roadmap in a Global Financial Consolidation - CVCA Annual General Meeting & China Venture Capital/ Private Equity Summit was successfully held in Shanghai on October 28, 2009. As one of the most important and well-recognized summits in China's VC/PE industry, it attracted over 300 guests ranging from VC/PE investors, government officials, bankers, and lawyers to entrepreneurs and other professionals. Mr. Xianglong DAI, Chairman of the National Council for Social Security Fund, was invited to this summit as the VIP and addressed the keynote speech. Mr. Xinghai FANG, Director General of the Financial Service Office, Shanghai Municipal Government, and Mr. Hongde Wang, Vice Director of Lu Jiazui Functioning Area Management Office, also delivered keynote speeches. They gathered together and explored the development strategy of China's VC/PE industry.
Under the current profound global financial and economic changing circumstance, this summit targeted many hot topics and analyzed a variety of case studies which included: RMB funds; the China Growth Enterprise Board and exit via domestic capital market; emerging investment opportunities in high growth industries and areas with great potential; and how to build win-win relations between VC/PE firms and enterprises. Mr. Yichen ZHANG, Chairman of China Venture Capital Association and Chief Executive Officer of CITIC Capital Holdings Limited stated: "Currently, China's VC/PE industry is embracing a new round of development, during which challenges and opportunities exist. The China Venture Capital Association is honored that we can continue to make contributions to the development and prosperity of this industry. "
Attendees expressed the belief that the high quality of this summit with its fine content is what attracts so many professionals, and that the CVCA AGM & Summit has grown to become one of the most important and highly recognized events in the VC and PE industry in the Greater China Region. Mr. Hongde Wang, Vice Director of Shanghai Pudong Lu Jiazui Functioning Area Management Office, stated: "CVCA is a very appealing industry association and it differs from government agencies. This is very attractive to the Pudong New Area Government and Lu Jiazui Functioning Area Management Office. This summit invites financial figures in China and experienced business leaders who will have an enormous influence on the establishment of national financial center in Pudong, Lujiazui."
Concerning the development strategy of CVCA, Ms. Frances HUANG, President of the China Venture Capital Association, declared: "CVCA will continue to be dedicated to strengthening communication and cooperation with the government and industry parties; providing more accurate and comprehensive industry data based on professional research conduct; sharing industry experience and training among members and other professionals and providing a high-quality service to strengthen the communication and cooperation with other domestic and foreign industry associations and organizations. In these ways, CVCA will contribute to the improvement of PE/VC industry standards in China."
Mr. Xianglong DAI: Upon the Gradual Adjustment of the Financial System, VC/PE is promising As the special guest speaker Mr. Xianglong DAI, Chairman of National Council for Social Security Fund, delivered a very important speech concerning the international financial system reforms, the adjustment of domestic financial institutions and the development trends of VC/PE. Mr. Dai declared that the total assets of the National Social Security Fund were expected to reach 750 billion Yuan by the end of this year, increasing to 1 trillion Yuan over the next year, and that they would consider increasing the direct investment scale in private equity. By June 30th, the total assets of the National Social Security Fund had already amounted to 660 billion Yuan with an investment return rate of 9.99%. This totaled an investment return of 51.2 billion Yuan from January and June. In the coming years, PE/VC investment in the fund is expected to be 100 billion Yuan. As for the most concerned state-owned share transfer, Mr. DAI revealed that state-owned shares worth 36 billion Yuan had been transferred to the National Social Security Fund however; it was still undecided on whether state-owned venture capital shares would be allowed to transfer to National Social Security Fund's shards. Finally, Mr. DAI spoke very highly of the contribution of CVCA members to China's VC/PE industry and stated that they set a very good example for the industry. Mr. Xinghai FANG: To Build an International Financial Center; to Perfect the Policy Environment of VC/PE in Shanghai The establishment of Shanghai's international financial center is under full construction, and the policy making is also at the forefront. And the recently launched preferential policy for the foreign private equity investment institutions gets full attention as well. Mr. Xinghai Fang, Director General of Financial Service Office, Shanghai Municipal Government, delivered a warm speech. His analysis of the active policies promoting VC/PE industry in Shanghai; specific recommendations and advocacy of the implementation of an innovative financial system and report on the need for a better platform for this industry was very inspiring and appealing. Mr. Xinghai FANG attached great importance to this summit and he expressed that VC/PE plays an important role in the construction of the Shanghai International Financial Center. In addition, stated that non-public funded financial institutions were also very helpful to the establishment of an innovative state financial system. He also reported on five related VC/PE measures from Shanghai government. First, that Shanghai has been standardizing the policy environment since last August; that by the end of June, there were 11 newly registered, foreign-owned, equity investment funds, with registered capital of 4.855 billion Yuan; and that there were also 24 registered equity investment companies, with registered capital of 250 million Yuan; that the Shanghai government had implemented a series of preferential policies for foreign VC/PE companies, which received very good feedback from the VC/PE industry; that by this August, 10 VC/PE management agencies had been registered in Shanghai, with a total amount of 32.46 million US dollars. Finally that the Shanghai government was actively coordinating to clear industry development bottlenecks, including securities accounts and filing at the National Development and Reform Commission and etc. In terms of future financial measures, Mr. FANG expressed that the Shanghai government will further perfect the policy environment and the administration of VC/PE, set up a good market platform of deal sourcing and exit, and will encourage districts and counties to set up government-guided funds. |
