Hugo SHONGFormer Chairman, China Venture Capital Association

Founding General Partner, IDGVC Partners

Executive Vice President, IDG

President, IDG Asia

Robert ASHWORTHPartner, Freshfields Bruckhaus Deringer

Conference Co-Chairman

Yichen ZHANGChairman, China Venture Capital Association

Chief Executive Officer, CITIC Capital Holdings Limited

On behalf of CVCA, Mr. Hugo SHONG gave the summit's opening remarks and expressed heartfelt gratitude for the guests' attendance at such a special time.

As one of the sponsors, Mr. Robert ASHWORTH, Partner of Freshfields Bruckhaus Deringer, made a humorous welcome address and said he was sincerely grateful for the work Mr. SHONG had done for the association and VC/PE industry during his tenure and also grateful for the efforts all the attendees had made in promoting the industry's development.

The newly elected chairman of CVCA, Mr. Yichen ZHANG spoke after Mr. ASHWORTH and promised to commit himself to the prosperity of the undertaking initiated by the former chairman. He said he had full confidence for the prosperous development of China VC/PE industry and added that he would continually strive to promote and improve the relationship between CVCA and the government and let the government hear more input from the industry.

abstract>>

Hugo SHONGFormer Chairman, China Venture Capital Association

Founding General Partner, IDGVC Partners

Executive Vice President, IDG

President, IDG Asia

Teresa TEAGUEManaging Director, Goldman Sachs (Asia) L.L.C

Lun FENGChairman of Vantone Real Estate

Mr. Hugo SHONG opened the welcome dinner with a speech in which her briefly looked back on the course of China VC/PE industry's development since CVCA was established, and also recalled the efforts CVCA had made to propel the industry's healthy development. Then Mrs. Teresa Teague, Managing Director of Goldman Sachs (Asia) L.L.C. and Mr. Lun FENG, Chairman of Vantone Real Estate gave splendid speeches to the guests.

abstract>>

Xiaoling WUVice Chairman, Financial and Economic Committee of the National People's Congress

Mrs. Xiaoling WU delivered a suburb keynote speech from the point of view of a policy maker and industry supervisor. She pointed out that the equity fund is the important investor in the capital market. Its development will help to lead a healthy capital flow in the market and strengthen the financing structure, to promote independent innovation and develop high quality IPO resources, to facilitate industrial and economic restructuring. It will be an important force not only for a stable and developing capital market, but also for China's economic transition.

detail>>

Moderator: Edward Suning TIAN, Chairman, China Broadband Capital Partners LP (CBC Capital)

Panelists:

Wenlian CAODeputy Director General, Dept. of Fiscal & Affairs, National Development and Reform Commission

Zheying LINDeputy Director General, Dept. of Foreign Investment Administration, Ministry of Commerce

Xiaofeng HEDirector, Financial & Industrial Development Institute of Peking University/ Finance Department of Economics School

Richard GUOPartner, Fangda Partners

Li LIPartner, Debevoise & Plimpton LLP

Qiannan LUTax Director, PricewaterhouseCoopers

Mr. Edward Suning TIAN, Chairman of CBC Capital, the panel's moderator explained and clarified the RMB Fund from two perspectives. One focused on policies and what achievements have been made in RMB Fund policies, and what work can be improved by the government. The other focused on how foreign fund management companies should enter into RMB fund market.

Mr. Wenlian CAO said the PE industry is naturally able to withstand the financial tsunami. For companies, their evaluations will return to a reasonable level, which definitely will prove to be a good opportunity for the PE industry. Mr. Wenlian CAO shared his viewpoint from the government perspective on the growth roadmap of RMB funds.

Mr. Zheying LIN said he hoped that government and enterprises could work together to confront the financial tsunami, and promote greater industry growth.

Other panelists also shared their opinions and expertise in areas such as academics, law and tax advice.

abstract>>

Moderator: Hugo SHONGFormer Chairman, China Venture Capital Association / Founding General Partner, IDGVC Partners / Executive Vice President, IDG / President, IDG Asia

Panelists:

Duane KUANGQiming Venture Partners, Founding Partner

Shangzhi WUChairman & Managing Partner, CDH Investments

Lan XUEManaging Director, Head of China Research, Citigroup Global Markets Asia Limited

Andrew YANManaging Partner, SAIF Partners

Panel II focused on the current situation and discussed the impact of the global financial turmoil on China's PE/VC industry. Mr. Hugo SHONG moderated this session and all such as Mr. Duane KUANG from Qiming Venture Partners, Mr. Shangzhi WU from CDH Investments, Mrs. Lan XUE from Citigroup Global Markets Asia Limited and Andrew YAN from SAIF Partners had a intense discussion.

Panelists said the financial turmoil has had a great negative impact on businesses both globally and locally. However, it has also presented the VC/PE industry challenges with opportunities. The weak macro-economic situation has placed enormous pressure on the VC/PE companies, and dampened both investments and exits. But China's VC/PE companies are getting increasingly experienced in dealing with risks and grasping new opportunities after years of development.

abstract>>

Moderator: Yichen ZHANGChairman, China Venture Capital Association, Chief Executive Officer, CITIC Capital Holdings Limited

Panelists:

Christopher BOWNPartner, Freshfields Bruckhaus Deringer

Jing HUANGManaging Director, Bain Capital LLC

Richard HSUDirector, Intel Capital China

Jana MATTHEWSFounder and CEO, The Jana Matthews Group

David H. LIUPartner of KKR,Head of KKR Greater China

Kathy XUFounder and Managing Partner, Capital Today Group

Following the previous session, this panel emphasized the trend for China PE/VC in the future. Mr.Yichen ZHANG pointed out invested companies should go back to the basic stand that their main mission is to make a company grow and said that easy money-making, which was a reflection based on optimistic predictions of China’s capital market, has faded away.

Guest speakers also gave suggestions on how to improve a company. They came to an agreement that management plays a vital role. They analyzed how to make a blueprint regarding management and how to execute it and how to train qualified managers.

abstract>>

Moderator: Roman SHAOManaging Partner, DT Capital Partner

Panelists:

Dinghuan SHICounsellor, The State Council / President, Chinese Renewable Energy Society

Ka Keung CHANManaging Director and Head of Investments Greater China, Climate Change Capital

Roy LUONational Program Director, Industrial Clusters Development & Capital Operation Program, ITPO-China

Xu ZHENGChairman and CEO of Sierra Solar

Chuanwei ZHANGChairman of Mingyang Group

This panel discussed the emerging business opportunities in China's new energy environmental protection industry. Mr. Roman SHAW said governments of all countries have been increasingly emphasizing clean energy and alternative energy sources.

This panel gathered the delegates from government, the VC/PE industry and the investment community, to discuss the regulatory environment and current state of the new energy and environmental protection industry. Mr. Dinghuan SHI introduced the positive efforts Chinese government has made in developing related industries and also the achievements. Two industry delegates talked about the operation of each company and the trend of industry development. And the investment party from Roy LUO was very optimistic regarding opportunities for industry.

abstract>>

Chang Q. SunManaging Director, Warburg Pincus Asia LLC

Panelists:

Heiner BRAUNPartner, Freshfields Bruckhaus Deringer

Johan LEVENManaging Director, Co-Head of Mergers & Acquisitions, Asia Ex-Japan Goldman Sachs (Asia) L.L.C.

J. Edward LIPartner, Morrison & Foerster LLP

David J. ROBERTSCounsel, O'Melvenys & Myers LLP

In this session, specialists from investment companies and law firms had an open discussion in order to help the attendees understand how to select the best time for an exit.

The panelists covered the sluggish market and falling market valuations and said that the situation would also bring more opportunities for VC/PE companies. They said VC/PE companies should still be helping invested companies to experience fast, healthy growth. They also said that the "fund of funds" is increasingly gaining more interest in the industry. It was also stated that IPOs should be enhanced with other approaches, such as exit methods, in order to be more diversified.

abstract>>

Robert ASHWORTHPartner, Freshfields Bruckhaus Deringer Conference Co-Chairman

At the end of Panel V, Mr. Robert delivered the closing remarks for the grand meeting and briefly summarized its achievements.

abstract>>