China VC/PE CFO Conference has been held on September 3, 2010 in Shanghai
First China Venture
Capital and Private Equity CFO Conference
– September 3rd, 2010, JW Marriott Hotel, Shanghai, China
China Venture Capital Finance Organization (CVCFO)'s First China Venture Capital and Private Equity CFO Conference was held successfully in Shanghai on September 3rd, 2010. As one of the most important and well-recognized conferences in China's VC/PE industry, it attracted over 100 attendees from VC/PE industries. Ms. Liping Fan, CFO of Steamboat Ventures and Mr. Mike Yahng from SVB, made opening and welcome remarks. Distinguished guest speakers from PWC, reputable law firms and other firms related to VC/PE industry as well as GPs and CFOs from VC/PE funds delivered speeches or joined various panels. The participants gathered together to communicate and shared best practices on Seven key topics of China's VC/PE industry: 1) Key issues/risks and new developments in PE/VC funds in China; 2) Managing Chinese investments in an anti-tax avoidance environment; 3) Current Legal and Regulatory Issues; 4) Exit Trend; 5) IPO Readiness; 6) CFO / Controller / Finance Manager Role in Portfolio Companies; 7) RMB Fund.
Opening and Welcome Remarks
Liping Fan CFO, Steamboat Ventures; Board member, CVCFOMike Yahng Chief Representative of SVB Shanghai Representative Office
Ms. Liping Fan and Mr. Mike Yahng made the opening and welcome remarks respectively. They expressed their appreciation to all the guests for attending this event, all the sponsors for their support, and wished the first China Venture Capital and Private Equity CFO Conference a big success.
Speech 1: Key issues/risks and new developments in PE/VC funds in China
Shirley Xie, Partner, Assurance & Business Advisory Services, PWCKey issues/risks and new developments in PE/VC funds in China
Overview of the China PE/VC Market Significant Auditing Matters Significant Accounting Matters Relating to PE/VC Funds Due Diligence on Portfolio Companies and IPO Readiness How to build sustainability – what LPs are looking for other than IRR
Panel 2: Managing Chinese investments in an anti-tax avoidance environment
Moderator: William Chen, Partner, DT Capital
Panellists:
Michael Ho, Tax Partner, PWC
Elton Huang, Tax Partner, PWC
Frederick W. Sroka, Tax Partner, PWC
• Chinese tax rules that give rise to the new concerns
• Lessons we learn from the tax cases
• What do other jurisdictions do?
• What does this changing tax environment mean to the fund?
• What can be done to manage the tax and accounting issues?
Panel 3: Current Legal and Regulatory Issues
Moderator: Steven Liu,
Head of DLA Piper's award-winning
Beijing corporate group
Panellists:
Charles Qin, Partner, Llinks Law Offices
Doris Tang, Partner, Fangda Partners
• Main Issues Affecting Venture Capital Industry Toady
• Structuring of investments for various exists: List in China vs. List offshore
• Impact of Circular 698 on exists: Sales of China-based portfolio companies
• Current debate on taxation of carried interest in the US
• Issues Affecting Specific Industries
• Key Issues in Recent Deals
Panel 4: Exit Trend
Moderator: Andrew Li,
Partner, Transaction Services group, PWC
Panellists:
Frank Au, CEO, Cowen Latitude Asia
Gavin Ni, CEO, Zero2IPO
Eric Landheer, Head of Asia Pacific, NASDAQ OMX Group
• Discussion on IPO returns for major capital markets China, US, HK for recent 2 years
• How to achieve the criteria quickly for IPO project
• Discussion on M&A Returns for recent 2 years
• Learning on successful cases of IPO or M&A
• Any other ways for exit except IPO or M&A
• How to deal with those portfolios with just so-so performance
Panel 5: IPO Readiness
Moderator: Nancy Sun, Finance Director, KPCB
Panellists:
James Zhang, CFO. ALLYES Online Media
Adam Li, Partner, Jun He Law Offices
Lili Zheng, Partner, Deloitte
International Tax, Deloitte Tax LLP
Lu Xuexian, VP, Guojin Security
• Type of Portfolios more accepted by overseas markets
• Is Chinese GEM Board the first choice for the exit to the fund's GP?
• Key review points for IPO in Chinese markets from SEC
• Key legal and tax Issues for overseas IPO
• Types of portfolio suggested go for overseas IPO from market standpoint
• Key legal and tax Issues for those portfolios moving back to local listing from the overseas market; Length of time and any irreversible deficiencies to be addressed
Panel 6: CFO / Controller / Finance Manager Role in Portfolio Companies
Moderator: Simon Ho, CFO, IDG
Panellists:
Vincent Win, Operating Partner, GSR Ventures
Filippo Huang, CFO, Gobi Partners
Edwin Xin, Finance Director, Envision Capital
• Level of Involvement
• Types of Support Needed by Portfolio Companies
• Facing the challenge when the honeymoon period is over
• Problem solving skills – carrot and stick approach
• When do they need you most?
• Tips on financial due diligence
Panel 7: RMB Fund
Moderator: Ming Yeh,
Managing Director, SVB Capital, China
Panellists:
Bill Shang, Partner, Dacheng Law
Jimmy Xu, CFO, DT Capital
Lewis Lu, Tax Partner, KPMG
• The route options for forming a RMB fund
• Who are the qualified GPs (SOEs and Listed Companies Restricted?)
• Brief discussion on three big points on the Catalogue of Industries for Guiding Foreign Investment, Foreign exchange and tax issues
• Current status of RMB fund and market in China
• What's the opportunity and challenge to operate an RMB fund from GP's view
Closing Remark and Pre-Conference Dinner
Upon the end, Mr. Filippo Huang, the Chairman of China Venture Capital Finance Organization (CVCFO), announced the successful conclusion of this conference, and he hoped everyone would continue to support CVCFO in the future. The next conference will be held at in August/September 2011. Save the date will follow shortly.
The Pre-Conference dinner was held on Thursday, September 2 at 5:30 p.m. at Barbarossa Restaurant & Lounge within People's Park, No. 231 West Nan Jing Road.