On December 6, 2014, the Sixth Global PE Beijing Forum, jointly organized by China Association of Private Equity(CAPE), Beijing Municipal Bureau of Financial Work, The People’s Government of Haidian District, Beijing Municipal, Beijing Private Equity Association(BPEA), was held at the Shangri-La Hotel in Beijing.
The opening ceremony was hosted by Fang Fenglei, who is the chairman of BPEA as well as the founder and the chairman of HOPU Investment. The director general of Beijing Municipal Bureau of Finance Work, Wang Hong, and the deputy district mayor of Haidian District, Meng Jingwei, gave out speeches. The chairman of CAPE Shao Bingren, CICCchief economist Liang Hong, the vice chairman of the National Council for Social Security Fund(SSF) Wang Zhongmin, the Ambassador of the
Republic of Poland in Beijing Tadeusz Nowitzki, the consultant of China Society of Economic Reform(CSER)Song Xiaowu, secretary-general of Asset Management Association of China(AMAC) Jia Hongbo , the chairman of Beijing Private Equity Association Shan Xiangshuang then gave out keynote speeches respectively.
Next, executive vice chairman of CAPE Yi Xiqun on behalf of CAPE issued the "China PE and VC industry Handbook" (2014 Edition). For PE and VC industry, the domestic industry is not yet clearly standardized or ruled. To sort out the chaos and promote the healthy development of the industry, since 2011, CAPE set up a special team of industry experts. They compiled and published "Guiding Principles for China PE and VC Industry" and conducted the first revision in 2012. The book got
revised again in September this year (2014 edition). The book includes a comprehensive collection of industry guidelines, funds structure charts, the core elements of legal texts, tax considerations point, the international valuation guidelines, PE and VC directories list, the relevant laws and regulations and so on. We hope it could continue to be an important reference book and a must-read classic in the field of equity investment funds on hand at any time for equity-related field personnel.
Subsequently, the vice chairman of CAPE He Xiaofeng released the results of the 2014 global and Chinese PE/VC institutions and events award. Through professional organizations and public call for nominations, information confirmations, jury selection and other aspects, 2014 global top 10 PE and VC and 2014 Chinese top 10 PE and VC, 10 best service agencies and major events in 2014 occurred within the industry were selected. It provided a referenced standard for the healthy development of the industry. Among them, Warburg Pincus, The Carlyle Group, TPG, KKR, The Blackstone Group, Actis, Goldman Sachs Group, Temasek, CVC Group, FountainVest Partners was awarded the 2014 global top 10 PE ;Sequoia Capital, IDG capital, SAIF Partners, Orchid Asia, KPCB, GE Ventures, New Atlantic Ventures, IBM Venture Capital Group, Bain Capital Ventures, Pantheon
Ventures won the 2014 global top 10 VC; CDH Investments , Fosun Capital , Warburg Pincus , HOPU investment , Hony Capital , the Carlyle Group , KKR, New Horizon Capital , CITIC Capital , CITIC Private Equity Funds Management won the 2014 Chinese top 10PE , Northern Light Venture Capital , Fortune Capital , Sequoia capital China, Hunan High-tech Venture Capital Investment Group Co., Ltd. , IDG Capital Partners, Matrix Partners China , Legend Capital, Shenzhen Capital Group ,
Shenzhen Co-win venture Capital Investment Limited , China Science & Merchants Capital Management was awarded the 2014 Chinese top 10 VC (In no particular order). In the afternoon, six parallel forums were held successively. Director and secretary of the Party Committee of State-owned Assets Li Baomin , director general of Policy Development Division in Korea Venture Capital Association James Park, chairman of Singapore Venture Capital & private equity association Dr Jeffrey Chi, vice director of Taiwan M & A and Private Equity Council Huang Xianhua as well as some industry association representatives and PE session leaders: executive vice president of CAPE Yi Xiqun, chairman and president of China Science & Merchants Capital Management Group Shan Xiangshuang, professor and doctor Advisor of the Finance department of Peking University, He Xiaofeng, director and CEO of BOCGI Zheshang Capital Co., Ltd. Li Xiaotian, chairman and president of China Beijing Financial Assets Exchange Xiong Yan, partner of Huinong Capital Dong Guixin , general manager of E-Town Capital Wang Xiaobo , chairman of Huarong Yufu Capital Huang Xianhui, founder, chairman and CEO of Zero2IPO Group Gavin Ni, executive director of New Alliance Captial Yao Yuanjie, chairman/CEO of CICC ALPHA Investment Fund Management Limited Joseph Liang, managing director of the Financial Service Business of the Heritage Group Mark Huntley and other industry celebrities, and vice president of China Reignwood Group and President of China Reignwood Health Care Division Henry Yu, founder and CEO of 91 Jin Rong Xu Zewei etc. shared their wonderful ideas and valuable experiences with the participants about LP and GP dialogue, financial reform, reform of mixed ownership, Internet financial investment, biotechnology / healthcare investment, FOF investment topics.
China's economy has entered a stage of “new normal” development, its main features include the slowdown of the growth in economics, the adjustment of the economics structure, etc. In this economics background, the Third Plenary Session of the Party's Eighteenth Conference instructed to further deepen the reform. This year is the first year of the progress of reform which provides an unprecedented opportunity for PE and VC industry. According to the Zero2IPO data, until 2014 Q3, there are about 9000 domestic active PE / VC organizations, the amount of capital management is over 4 trillion RMB . In 2014, the Chinese equity investment industry has warmed up, IPO exit activity increased dramatically. Panelists agreed that in the background of the reform, equity industry is facing more opportunities, not only financial reform or reform of mixed ownership, private capital have the opportunity to participate to share dividends of reform through equity investment; the reform also provides a convenient and liberal external environment for business innovation, the equity industry will grow up with Chinese companies and the Chinese economy as the reform goes on.
The forum also held an in-depth discussion about the importance of self-discipline and regulation of equity investment industry. In August, CSRC issued the "Interim Measures for supervision and management of private investment funds " explaining the registration, the system of qualified institutional investors, fund-raising rules, etc. But the current private equity industry is still in need for legal basis of regulation. According to the revision of the "Securities Investment Fund Law" in December 2012, there is no clear regulation for the legality of the private investment equity. The lack of legal basis on the one hand provided wide space for the development of the industry, but on the other hand lurked huge risks which caused problems for government regulations. Panelists believed that the Government should create a liberal space for the healthy development of the industry, give full play to
the self-discipline of the industry associations, and actively guide and norm the healthy development of the industry.