Shong: China is the purgatory of entrepreneurs ' paradise investors

2007 is destined to be China's venture capital and private equity investment in the history of the extraordinary year. The policy environment gradually improves, multi-level capital market system reform is deepening, the gem is brewing, the RMB fund is gradually approaching, and the local VC begins to enter the harvest period. In which direction will Chinese VC go in 2008? A few days ago, in the "Seven annual China Venture capital Forum" sponsored by the Qing Ke Group, the leading leading figures in the country have made in-depth discussions on this. This year, domestic market financing provoked the south of the beam: Can you give a brief introduction to the 2007 China venture capital? Gavin, founder, president and CEO of Qing Ke Group: The new study of the Research center of Qing Ke Group shows that 2007 1-November A total of 203 Chinese enterprises were listed in the domestic and foreign capital markets, Financing amounted to $88.524 billion, of which 98 companies listed in nine foreign capital markets, financing 34.209 billion of billions of dollars, and domestic capital markets attracted 105 companies listed, with a financing amount of 54.316 billion dollars. The choice of capital market and the distribution of industry are more diversified, while domestic market financing has produced a new outbreak, and gradually provoked the beam of capital market. About 40% of the 203 Chinese companies listed in 2007 were venture capital or private equity-backed companies, with a total of $28.409 billion trillion in financing, which accounted for 32.1% of the total amount of financing in the year. The overseas market listed 50, Financing 13.684 billion U.S. dollars, domestic market listing 30, financing 14.725 billion U.S. dollars. Venture capital is very active this year, in the next 5 years, China's investment may reach 5 billion U.S. dollars, what is the concept of 5 billion dollars? Is 1/5 of the U.S. investment, we currently only reached 3 billion U.S. dollars, is the United States 1/8, and in 2002, China's investors are the United States 1/20, 1/30. At present, VC, PE in China has entered the second wave of competition, the first wave of competition, many companies in China very successful, Now the second wave of competition began again, more funds into China, I think the market will have a round of reshuffle. IDG Technology Venture capital partner Shong: 2007 China's venture has made great achievements, but some people think that for VCs, the test is just beginning, now China is purgatory. IDG Technology Venture capital partner Shong: I think China is an entrepreneur's paradise, China has many opportunities, very big market, also has a lot of money. For us venture capitalists, it is our purgatory to invest in China, because we will face a lot of competition. 2007 years of development of investment industry is very hot, if there is no good regulation, or a good experience to share, the price of investment will be more and more high, the industry will be more disorderly, the rate of return will be relatively low. The founding and implementing partner of Sequoia Capital China Fund: I think 2007 years may not be the watershed of venture capital development in China. As the bear always said, "for venture capitalists, China is purgatory now", I don't think it'sAfraid。 Although the money to enter China is more and more, the momentum into China more and more fierce, but the venture capital industry, its own growth in the law and other industries, and we invest in many industries are not fundamentally different. Venture capital Enterprises must now focus on starting to exercise their internal strength. Shong: I say the purgatory is actually to say to practice the internal strength. Local foreign ventures will be the long-term coexistence of Lenovo Investment managing director Wang Neng Nan are: In the past, venture capital is at both ends, that is to raise capital and exit all abroad, with the rise of a shares and the rise of RMB funds, domestic LP (limited partners) also began to rise, the policy is also guiding our venture capital localization, What is the competition pattern of the future local venture and foreign venture investment? Will things change at both ends? Lenovo Investment managing director Wang Nenguang: From the long-term development, the Chinese economy continues to grow, the renminbi investment in domestic enterprises is also an inevitable trend, with the internationalization of industry, financial internationalization, the dollar continued to invest in China is a trend. So I think that the future of local ventures and foreign ventures should not coexist. Some businesses, some companies, suitable for renminbi investment, but also suitable for the A-share market, some companies suitable for foreign markets, the dollar investment may be more favorable for it. Shong: I am not particularly clear about a-share market. Because there are a few places out there now, the exit lock is longer regularly and the tax rate is not the same as that of the foreign country, which in 1982 had a law that lowered the tax rate for long-term investments to 20%, and soon dropped to 15%. Besides, we have a lot of money from non-profit organizations, and will the money be returned to him or tax? There are a series of problems that we can't do. Of course, we have also done a number of companies, also successfully listed. We know that Shenzhen's gem has been shouting for 8 years, and now has not come out, we have a lot of dialogue, hoping to be more competitive and attractive than Nasdaq. I hope the government can listen to our voices more. I think we are absolutely willing to be listed in a shares, but there are some things that we can not specifically do. Haitao, chairman of Shenzhen Innovation Investment Group: We have both RMB funds and foreign currency funds. I think the renminbi fund has a very good future. I think the gem should be launched in the first quarter of next year, from the current policy, is to support investors, so that these enterprises can better develop rather than die. RMB Fund Enhances capital market efficiency Shangan, chief partner of the SoftBank Investment fund: What will be the next 2008 years? SoftBank Investment fund chief Partner Yan: there will not be much change, but the big bright spot is that there are more and more opportunities for the restructuring of some state-owned enterprises with venture capital and PE participation. Historically, China's capital efficiency is the lowest. But in the past few years, China's banks have been listed, the efficiency of the capital market has greatly improved the quality of the assets of these banks, and the emergence of renminbi funds to China's capital efficiency has been greatly improved, but compared with the world's developed countries stillis very low. I think there's a big chance. Ding Hui investment Chairman Wu Ding Hui Investment Chairman Wu: I think international investors are still increasing, enthusiasm for China has not been reduced, this enthusiasm will continue to 2008 years. But it is also a very important competition, which refers to the maturity of the whole Chinese capital market. The development of a-share market poses a challenge to our environment, and new requirements are put forward in the project selection and structure design. I think there is still a lot of room for development of foreign capital, but it is an opportunity and challenge for any fund manager to create new opportunities for RMB funds. Reporter Jongming