CVCA Study Mission to Guizhou and Guiyang

中文

In order to foster the development of equity investment in western China and PE& VC industry in Guizhou province, China Venture Capital and Private Equity Association (CVCA) organized a high-level study mission to Guizhou and Guiyang on June 24th, 2011 (Friday). The mission seeks to bring investment opportunities and new economic ideas to Guizhou.

“CVCA Study Mission to Guizhou and Guiyang” was led by Zhang Yichen, chairman of CVCA directors board and CEO of CITIC Capital Holdings Limited. During the conference, CVCA members discussed the investment environment in Guizhou with the officials led by Mr. Meng Qiliang, the Vice-provincial governor of Guizhou Province. Then the delegation visited Guiyang Municipal Bureau of Commerce, and exchanged their views on the PE Fund development strategy in Guiyang with related officials and enterprise representatives.

Senior executives of CVCA member companies participated in the trip, such as The Carlyle Group, CITIC Capital, Baring PE, SAIF, PineBridge, TS First Fortune, Mezzanine Capital, Lunar Capital and other famous foreign and domestic investment institutions.

Government Forum: rich natural resources make opportunities

A government forum was held on the morning of June 24th, which attracted both the CVCA delegation and Guizhou government departments. The Director-General of Guizhou Commerce Department, Mr. Yu Wenchun, gave a detailed introduction to the recent development of Guizhou “Due to the poor geographical position, the development of Guizhou is far behind other provinces. However, rich natural resources of Guizhou could create great opportunities like Aluminumore, Phosphorite and other resources.” In addition, as the policy of Western Development has been carried out, Guizhou government has also made great efforts to both the traditional industries, and new industries. Ms. Liu Fengqin, official of Guizhou Invest Bureau stated, that all the officials are working hard to attract investment.

Mr. Yang Ying, manager of Guizhou Technology Risk Investment (the first venture capital organization in Guizhou), introduced Guizhou's PE and VC development in recent years. The delegation expressed their keen interest and their pleasure to have the opportunity to communicate with Mr. Yang.

Meet-and-greet with the Guizhou provincial governor: development opportunities in Guizhou for the 1025 Period.

After the government forum, Mr. Meng Qiliang met with the delegation members. As the direct leader of Guizhou's economic development, Mr. Meng introduced the general situation of Guizhou and the province's targets and strategies in the 1025 Period. Mr. Zhang Yichen expressed his gratitude for Guizhou's development policies and introduced the delegation members and their investment areas. Mr. Zhang said, the rapid development of Guizhou is the main reason for CVCA Study Mission making it the first stop to the mid-west.

Mr. Meng said that, Unfavorable geographic position of Guizhou greatly limits its development. In order to reverse the situation, Guizhou will vigorously develop the high-speed railway system in the 1025 Period, which means Guizhou will construct the high-speed railway between Guiyang and Guangzhou, Kunming, Chengdu, Chongqing and Changsha. When the projects complete, travel time from Guiyang to Guangzhou, Kunming, Chengdu, Chongqing and Changsha will undoubtedly be greatly decreased. Once the transportation has been improved, Guiyang will be involved into the great China economic circle and ASEAN. In addition to the traditional industries, Guizhou will also develop some new industries, such as logistics, tourism, pharmaceutical and green food.

Talking with Guiyang representatives: making use of resources to seek cooperation and opportunity.

On the afternoon of June 24th, the delegation visited Guiyang Municipal Bureau of Commerce and other departments. Mr. Pei Bin, Deputy Director General of Guiyang Commerce Bureau, presided over the meeting and introduced nine stated-owned high-tech enterprises, for example, Guiyang's new technology and industrial development zone. Hu Yongjia, Director of Guiyang Science and Technology Bureau, analyzed the current situation of Guiyang and the investment opportunities. Then Yi Yanxia, Vice-chairman of Guiyang Industry and Information Technology Committee, explained why the development of some industries in Guiyang is far behind other areas, and introduced the preferential policies for PE/VC.

Afterwards, Manager of Guiyang's High-tech Venture Capital funds and Guiyang High-tech Holding Group introduced the development of Guiyang's Jingyang high-tech development zone, as well as the preferential policy and financial support for the new industry. He also analyzed the advantages and disadvantages of Guiyang's High-tech Venture Capital funds as being state-owned, and said that the rapid development of Guiyang's Jingyang high-tech development zone badly needs financial support and investment. As the capital, and the most active area of Guizhou, Guiyang has a great potential for the development. Mr. Zhang Yichen indicated that as one of the three provincial development zones in Guizhou, the Jingyang high-tech development zone is the leading area of Guizhou. Due to the rapid development of Guiyang enterprises, CVCA members showed strong interest in enterprise financing.

As a national PE and VC association, CVCA contributes to the development of PE and VC industries in China. In the future, CVCA will enhance the communication with mid-west China, and encourage investment in the west and mid-west, in order to promote the economic development of the greater China region.