China Venture Capital Forum Reinforces Industry Standards

Filed in archive VC and PE: education and training on August 18, 2005

This posting is an abstract from a recent broadcast held on the development of Chinese venture capital at the ABP (Advanced Business Park) in the Zhongguancun high-tech district of Bejing. The forum held last month does illustrate the high priority now given to the development of venture industry.

Xu Weiping, executive director of Dauphin International Group, the developer of the science business park, hosted the venture forum and some of the select attendees included: Chen Zhenhong, chairman of the hong kong Venture and Private Placement Investment Association, Zhang Ying of WI Harper Group, Mr. Jiang Shansong, partner of Walden International, Sun Wenhai of Draper Fisher Jurvetson, Zhu Lin of Gobi Partners, Dr. Hong Chen, CEO of Hina Group, Wang Songgi, Secretary General of Beijing Venture Capital and Investment Association and many Chinese entrepreneurs.

Summary of ABP Venture Forum:

� Hong Kong as a base for VC funds still has an advantage over domestic VC funds. The management resources are more abundant, including top-tier investment bankers, lawyers, accountants and real estate and IPR professionals.
� The most important point is that Hong Kong has more knowledge and experience with capital markets (the exchanges and banking system).
� China remains attractive to the global venture capital today because less capital can generate a greater market value, in comparison with foreign companies.
� Increased opportunities for VCs to offer many value-added services to entrepreneurs.
� China's innovation fund drives more entrepreneurial companies.
� Expect to see the more reforms and changes in early 2006 from the Securities Regulatory Commission to stimulate the market.
� The Ministry of Science and Technology assumes an even greater role in influencing favorable finance and taxation policies to assist the venture capital industry.