Preliminary programme

Registration and refreshments

Opening keynote address: Global economy and China in the post-crisis era

A review of the global economy in the post-crisis period and how China is developing and interacting with international financial environment:

• Will China achieve a better balance between its internal demand and dependence on exports? Is the domestic demand boosted by China’s stimulus package sustainable? Has China solved the problem of potential over-reliance on exports?
• What is the impact of inflation, potential appreciation of Renminbi and the increased capital reserve rate in Chinese banks on the Chinese economy?
• Will Obama’s proposed bank rules affect the economy in China?
• Will China be able to achieve another “soft landing”?

Speaker
Andy Xie, Independent Economist

Keynote panel: Private equity in China: A new playing field emerges?

Various parts along the PE value chain worldwide have been hit by the global financial crisis. Signs of recovery are seen in various quarters, but whether the path is in V, W, L, or whatever shape is arguable. China was not exempted from the global turmoil but thanks to its prompt stimulus package, urbanization policies and regulatory measures, the economy is looking decidedly rosier than its peers in the West. In additional, recent policies have allowed more room for private equity as a driver of the country’s economic development. However, is it smooth sailing all the way?

• Opportunities and risks created by the emerging “local fundraising, local investment, local exit” value chain.
• Prospects for and hurdles to foreign funds getting onshore in future.
• Have the high P/E ratios on the Shanghai and Shenzhen exchanges (including ChiNext) discouraged long-term value creation in portfolio companies and shifted funds towards the pre-IPO market?
• Impact of the potential wind-back of the government stimulus package on private equity.
• Does China’s urbanization policy offer substantial opportunities to private equity investments in China?
  
  

  Moderator
  John E "Jack" Lange, Partner, Paul Weiss

  Panelists
  Jonathan Zhu, Managing Director, BAIN CAPITAL ASIA, LLC
  Jean Eric Salata, Founder & CEO, BARING PRIVATE EQUITY ASIA
  Shirley Chen, Managing Director & Head of Private Equity, CHINA INTERNATIONAL CAPITAL CORPORATION LIMITED
  Andy Yan, Managing Partner, SAIF PARTNERS
  Stephen Peel, Managing Partner & Group Head - Greater China, Eurasia, India & SEA, TPG CAPITAL

Change of capital flow and fundraising

The global credit crisis has crimped liquidity and slowed both fundraising and exit. While firms’ ability to close deals might have been affected by their overseas fundraising activities, the China concept has remained a credible proposition. Domestically, apart from social security funds and government guidance funds, recent policies are allowing certain domestic institutions to participate in private equity. How will the change of capital flow affect fundraising in China?

• How is the capital flow changing, overseas and locally?
• How will the participation of Chinese commercial banks, trusts, securities and insurance companies affect the private equity ecosystem?
• Possibilities and potential of Qualified Foreign Limited Partners (QFLP).
• Impact of increase in banks’ capital reserve ratios on private equity.
  
  Moderator
  Patricia M. Dinneen, Managing Director, SIGULER GUFF & COMPANY LLC
  
  Panelists
  Markus Ableitinger, Director, Head Asia Investment Management, CAPITAL DYNAMICS
  Johannes Schoeter, Founding Partner, CHINA NEW ENTERPRISE INVESTMENT
  Frank Gong, Managing Director, Chairman, China Diversified Industry Clients, Vice Chairman, China Investment Banking, J.P. MORGAN
  Xiaodong Jiang, Managing Director, NEA

Renminbi funds and Foreign funds: The changing ecosystem

The two different sets of regulations governing foreign and Renminbi funds have determined their time-to-market, sectors to invest and tax obligations, among others. On the one hand, pioneering foreign funds are seeking to go onshore. Latest policies have also made such move closer to reality. On the other hand, their domestic counterparts have undergone a significant growth over the past two years, and the government is encouraging local institutions to play the private equity game. How will the private equity ecosystem evolve in China?

• Is now the right time for foreign funds to move onshore?
• What will be the future drivers of growth for Renminbi funds?
• Opportunities offered by and limitations of the “Administrative Measures for the Establishment of Partnership Enterprises within China by Foreign Enterprises or Individuals” (released by the State Council on 2 December 2009 and effective on 1 March 2010).
• Current restrictions and future development of joint venture funds.
• Future development in fund structures.
• Resolving conflicts in firms managing both foreign and RMB funds.
  
  Moderator
  John Gu, Partner, China Tax, KPMG China
  
  Panelists
  Xiaoyang Yu, Founding Partner, CHINA NEW ENTERPRISE INVESTMENT
  Sammuel Zhao, Partner, JUN HE LAW OFFICES
  Jeff Jie-Ping Yao, Founding and Managing Partner, PRAX CAPITAL
  Hao Wu, Partner, SINO-CENTURY CHINA PRIVATE EQUITY PARTNERS, LLC

12:50

Lunch

A multilateral dialogue: The future of private equity in the 2010s

Industry leaders from China and around the world share their vision of private equity for the decade.

Moderator
James H. Boettcher, General Partner, FOCUS VENTURES

Panelists
Nicholas Parker, Executive Chairman, CLEANTECH GROUP
Fritz Becker,CEO & Managing Director, HARALD QUANDT HOLDING GMBH
Gary Rieschel, Founder & Managing Director, QIMING VENTURES PARTNERS
Tim Demchenko, Managing Director, Global Head of Private Equity & Special Situations, VTB CAPITAL

Diversification of deals: Shop, but don’t get lost!

The rapid economic development and growth of private equity in China has resulted in diversification of deals in both geography and sectors. In terms of location, urbanization policy means that the government will allocate more resources than before to upgrade the rural regions. At the same time, second- and third-tier cities involve lower costs of operation within the portfolio companies and thus have larger room for growth and profit. In terms of sectors, venture capital in particular has diversified portfolio, from IT to a greater variety of industries. Which regions(s)/sector(s) will champion the next wave of private equity success in China?

• Cleantech
• Healthcare
• Retail/consumer
• IT
  
  Moderator
  James Mi, Managing Director, LIGHTSPEED VENTURE PARTNERS
  
  Panelists
  Robert Yi Li, Partner, BIOVEDA CHINA
  Peter Kennedy, Managing Director, CLSA CAPITAL PARTNERS
  Cadol Cheung, Founding Partner, FUEL CAPITAL
  Nengguang Wang, Managing Director & CFO, LEGEND CAPITAL

Post-crisis deal sourcing, valuation and portfolio management: Are we heading in the right direction?

The global financial crisis has highlighted the consequences of investing at unrealistic valuations in overheated markets. Can we do better and prevent the same from happening again? There is a trend for firms to move towards late-stage investments, hold the portfolio companies for a shorter period of time, and harvest from the China stock market upsurge. Is this healthy to the PE/VC ecosystem?

• Is valuation too high in China?
• Risks with some current, popular methods of valuation.
• How will Guoshuifa [2009] No 82 (Notice 82) issued by the State Administration of Taxation affect private equity transactions involving a PRC target?
• How has SFAS 157 influenced valuation overseas?
• How to identify firms that create value for their portfolio companies?
• Where will innovation in China come from?
• Are alternative financing sources such as mezzanine capital available?
  
  Moderator
  Tony C. Luh, Founding Managing Partner, DFJ DRAGONFUND CHINA
  
  Panelists
  Joseph W. Ferrigno III, Managing Partner, ASIA MEZZANINE CAPITAL GROUP
  Brett Tucker, Partner, BAIRD CAPITAL PARTNERS ASIA
  Tina Ju,Founding & Managing Partner, KPCB CHINA
  Matt Fish, Managing Director, NEW PACIFIC CONSULTING

Keynote address
Future interactions between China’s Private Equity Industry and its economy

Fred Hu, Chairman of Greater China, GOLDMAN SACHS (ASIA) LLC

Exit: Old doors re-opened, new doors installed… and, mind your step.

Globally, exits have almost halted due to liquidity problems that made IPO and trade sale markets difficult. Revival of these exit channels has started, although post-IPO prices reflect caution in the market. Locally, the long-awaited launch of ChiNext in Q4 2009 has opened a door for venture capital, and the high P/E ratios at Shanghai and Shenzhen exchanges (among occasional rumour-led surges) have retained the attractiveness of IPO in China. After all, it is tempting to cash out prior investments for liquidity and to return money to LPs. How will these exit channels develop?

• IPO in Hong Kong: Improving sentiment but post-IPO prices reflect caution in the market.
• IPO overseas: time frame of revival.
• ChiNext: Are current P/E ratios sustainable towards the end of the lock-up period in future?
• Trade sale: What are the key drivers?

Moderator
Anna Cheung, Partner & Co-Head of China, 3i

Panelists
Homer Sun, Managing Director, MORGAN STANLEY PRIVATE EQUITY ASIA
Sherry Yin, Partner (Beijing), MORRISON & FOERSTER LLP
Robert H. McCooey, Jr.,Sr. Vice President & Head of International, THE NASDAQ OMX GROUP
Edan Lee, Managing Director, OLYMPUS CAPITAL HOLDINGS ASIA

Growth capital:
Benefiting from economic growth, stimulation of internal demand, industry restructuring and outbound expansion – but is it sustainable?

The expansion of growth capital in China has been driven by the country’s economic growth for the past three decades and government policies to stimulate internal demand, industry restructuring and outbound expansion. But is the momentum of growth capital sustainable?

• PIPEs emerging as a common strategy for large funds.
• How should growth capital harvest the opportunities created by the changing demographics (for example, from the youth consumers to an ageing population in future)?
• Sectors which will take the lead in growth capital in future.
  
  Moderator
  Jie Gong, Vice President, MORGAN STANLEY ALTERNATIVE INVESTMENT PARTNERS
  
  Panelists
  Benjamin Cheng, Partner, ACTIS LLP
  André Loesekrug-Pietri, Managing Partner, CEL Partners
  Mark Qiu, CEO & Managing Director, CHINA RENAISSANCE CAPITAL INVESTMENT INC. (CRCI)
  Yibing Wu, President, CITIC PRIVATE EQUITY FUNDS MANAGEMENT CO., LTD
  Lixun Gong, Partner, LUNAR CAPITAL

LPs’ vision

The proposed QFLP arrangement allows the participation of foreign LPs in Renminbi funds, but under the current national policy of foreign currency control (especially due to the recent fear of the influx of hot money) its feasibility remains problematic. Meanwhile, the local LP environment is still underdeveloped. What does the future hold for LPs in China?

• The future of QFLP in China.
• What will be the key drivers of a local LP environment?
• How do key-man clauses help in governance issues?
• How do the ILPA principles hold in China?
• How necessary and effective are in-house investor relations teams within GPs? Are there any differences in the results between in-house and outsourced IR functions?
  
  Moderator
  Sebastiaan C. van den Berg, Principal, HARBOURVEST PARTNERS (ASIA) LIMITED
  
  Panelists
  Edmond Chi-Man Ng, Managing Director and Co-Founder, AXIOM ASIA PRIVATE CAPITAL
  Kelvin Liu, Director, INVESCO PRIVATE CAPITAL
  Peng Zhao, Department Head, China Structuring, PARTNERS GROUP
  Monte Brem, CEO, STEPSTONE GROUP