4th Annual VC/PE CFO Conference in 2013, Beijing China

4th Annual VC/PE CFO Conference Review

Fourth China Venture Capital and Private Equity CFO Conference organized by China Venture Capital Finance Organization (CVCFO), was held successfully in Beijing on September 6th, 2013. As one of the most important and well-recognized conferences in China's VC/PE industry, it attracted near 200 guests ranging from VC/PE investors, government officials, academics and financial service providers. Mr. LI Yao, CEO of China Asean Fund and Chairman of Investment Committee of China-ASEAN Fund, delivered a keynote speech. Distinguished guest speakers delivered speeches, such as Wendy Kok, CFO of Sequoia; Grace Lee, CFO of Qiming; Terrance Philips, Managing Director of Citi Privae Bank; Simon Ho, CFO of IDG; Valerie Houts, Senior Vice President of Merrill Lynch Venture Services Group; and Alice Chan, Head of Asia Private Equity Services of SVB. The participants gathered together to communicate and shared good practices on Six key topics of China's VC/PE industry: 1) Tax; 2) Legal and Regulatory Updates; 3) Fund Raising Challenges and LP Concerns; 4) HK Development as PE/VC Hub in the Region; 5) Exit and Capital Market Update; 6) CFO Panel.

SVB Welcome Remarks   Alice Chan – SVB

Keynote Speaker   Li Yao – China Asean Fund

                                                                   

1) Tax Panel                                                     

Moderator: Wendy Kok – Sequoia

Panelists: Oliver Kang – PwC, Patrick Yip – Deloitte

Topics:

FATCA                                                  

Update on Circular 698                                                                                         

Update on Circular 601 for Treaty Benefit Claims on Gains for Equity Interest Transfer      

Update on Fund Taxation in China

Tax planning for the carried interest for GP

Practical tax issues that encountered by RMB Funds during exit

Latest thought of VIE structure

2) Legal and Regulatory Updates                                          

Moderator: Grace Lee – Qiming

Panelists: Steve Franklin – Gunderson, Ian O’Donnell – Cooley, Ping Zhang – Han Kun

Topics:                  

Major changes in recent fund terms                                        

Two issues for Rmb funds – the ultra short fund life and LP default issues                    

Update on European Union AIFMD                                                              

How do the new requirements from Chinese regulator affect the operation of PE/VC funds/ Update on Qianhai development

How to better draft LPA to address GP dispute issue

3) Fund Raising Challenges and LP Concerns

Moderator: Terrance Philips – Citi Private Bank

Panelists: Dayi Sun – Jade Invest, Jordan Silber – Cooley, Taylor Lam – Deloitte, Ming Yeh – SVB Capital, Edmond Ng – Axiom Asia

Topics:

Fund Raising Statistics                                                                  

Lifecycles of Investment                                                                  

Lack of Exit                                                                                

How Terms Have Changed in 5 Years                                            

LP’s View of VC as an Asset Class                                            

LP’s Expectations

4) HK Development as PE/VC Hub in the Region                    

Moderator: Simon Ho – IDG

Panelists: Florence Yip – PwC, Patrick Ip – China-Asean Fund, Sara Yip – Hong Kong Monetary Authority

Topics:

What are the key considerations for setting up a presence in HK?          

How does HK compare with other jurisdictions?                    

What has the government done in promoting HK as a fund hub?

5) Exit and Capital Market Update                                    

Moderator: Valerie Houts – Merrill Lynch

Panelists: Gavin Ni – Zero2IPO, Jerry Ku – Gunderson, Vincent Cheuk – PwC, Kenneth Chow – Bank of America Merrill Lynch

Topics:

Offshore IPO - Chinese IPOs in the U .S. market                                

Domestic IPO - IPO window re-open?                                                

M&A/Tradesale Exit – becoming more common form of                

VC/PE Exit in China?                          

6) CFO Panel                                                                                                       

Moderator: Alice Chan – SVB

Panelists:Vincent Fok – Boyu, Kathy Chen – SBCVC, Liping Fan – Steamboat Ventures, David Cheung – FountainVest

Topics:

Valuation Challenges – VC vs PE types of investments              

Capital  Operational Considerations – from financing management, investor relations to collaboration with deal team            

Finding the finance talents and talent retention                    

With the end of the Sixth panel, Mr. Filippo Huang, the Chairman of China Venture Capital Finance Organization (CVCFO), announced the successful conclusion of this summit, and he hoped everyone would continue to support CVCFO in the future. The Pre-Conference dinner was held on Thursday, September 5th on 6 p.m at China World Summit Wing, Beijing.