2010 China RMB Funds Forum

September 3rd

8:30-9:00 Registration

9:00-9:10 Welcome and Opening Remarks

Eric L. SCHMIDT, President of China Entrepreneurs

9:10-9:40 Keynote Address

9:40-10:40 The Establishment of RMB Funds (Body, Structure, Tax, and Foreign Currency Exchange)

In recent years, it has become increasingly popular to set up an RMB fund in China. A number of venture capital companies have set up RMB funds by establishing joint venture funds with domestic LPs or by directly creating a local LP. A survey indicates that while only 2.6% PE / VC organizations are not interested in or planning the establishment of a RMB fund, an impressive 97.4% of them are. The latest data shows that during the first quarter of 2010, 41 RMB funds were created with a total value of U.S. $ 2.868 billion, while only 7 foreign currency funds were created with a total value of U.S. $2.823 billion. RMB funds have surpassed foreign currency funds in terms of quantity and total value. It is fair to say that the RMB fund market has great potential.

Accomplished local fund managers and government officials are invited to conduct an in-depth discussion of issues like structural diversification, internal operation modes, incorporation system, comparison and selection of partners, different modes of law and taxation issues, as well as preferential policies for attracting foreign investment of VC/PE granted by local governments.

10:40-11:00 Networking and Refreshment Break

11:00-12:00 The Optimal Investment Strategies for RMB Funds

In the mid to late 1990's, the government of the PRC planned the launch of the GEM board for encouraging high-tech industrialization.
Subsequently, the government, working with various organizations established a number of RMB investment companies. But many areas of
China's financial market were closed and RMB funds could only play a supporting role. For the past two years, fueled by the return of IPOs and the
high returns brought by the GEM board in particular, RMB funds have become popular and are sought after by investors.

This session will invite experts with rich practical experience to share with you and discuss issues such as how to view RMB fund investment prospects, different methods for setting up RMB funds, the position of funds led by governments, different investment strategies, and solutions to challenges during the investment.

12:00-13:30 Lunch

13:30-14:30 Risk Controls for RMB Funds

During the development process, RMB funds will be exposed to a variety of risks related to the market policy, interest rate,
management, credit, operation, etc. It requires you to make bold RMB fund investments and to be cautious of the risks.
Therefore, knowing how to prevent and control risk is an important prerequisite for a successful investment.

During this session the best risk management fund companies will offer you an in-depth analysis of the new concerns faced by VC / PE due to the high price-earnings ratio of the GEM. This session will also discuss how senior LPs select the appropriate senior GP, how to optimize the investment portfolio to achieve high return rates, and issues like policy barriers for the fund during its development. Through these discussions, this forum will help you establish an understanding of risk management in order to seize local opportunities.

14:30-15:30 Possible Conflicts of Interest Between RMB Funds and U.S. dollar Funds

With the financial crisis not yet over, foreign venture capital institutions have been cautious, making it much more difficult to create foreign currency funds. At the same time, the domestic economy fueled by favorable state policies in China has picked up. With the gradual improvement of the capital market and increasingly abundant resources for venture capital, it is possible that RMB funds might be able to replace U.S. dollar funds to become the main force of China's venture capital market. But at this stage, RMB funds are not in the position to replace U.S. dollar funds and RMB funds still face a lot of obstacles. Therefore the "dual driving" mode of RMB funds and U.S. dollar funds have become popular with PE /VC firms, with daily trends of convergence between the two.

This session will invite veteran experts managing both RMB funds and U.S. dollar funds to discuss the potential conflicts of interest between the two as well as “win-win” cooperation possibilities. How to balance conflicts of interests between the local LPs versus those abroad is also a challenge for the GP. The discussion focuses on current hot topics like how to strengthen local funds by emulating the mature operating experience of U.S. dollar funds as well as the barriers for the LP of foreign capital investing on the local fund (QFLP and RMB FOF).

15:30-16:00 Social Networking and Refreshment Break

16:00- 17:00 Exit Mechanism of RMB Fund

After the financial crisis, the Chinese stock market emerged as one of the world's most attractive markets. In particular the development of the GEM is favored by numerous investment institutions at home and abroad. We believe that the improvement of China’s multi-level capital markets and additional exit channels will stimulate the injection of more capital into the Chinese VC/PE market, hence triggering a new round of RMB Fund investment. However, the current exit mechanisms in China are still in their infancy compared with that of the international market. Therefore the creation of smoother exit channels is still the top priority.

During this session moderators and guests will hold an in-depth discussion about the pros and cons of RMB Fund exit mechanisms through IPOs and through "mergers and acquisitions". Also this session will discuss how to make the best decision despite more and more exit options, the risks of IPO exit mechanisms in China, and how to improve the GEM so that you will be fully armed to embrace the explosive growth of RMB funds.

17:00-18:00 RMB Private Equity and FOF's potential in China

China's RMB funds are now undergoing constant development and improvement. In the past there was no regulation and supervision imposed on RMB funds. Any carelessness could make even a large-scale private equity fund suffer great losses in the capital market. In addition, foreign investors also expect to divide the market share in China due to the shift in the international balance of payments and the relative excess of domestic liquidity. Therefore it is critical to have RMB funds legalized as early as possible.

During this session industry experts and scholars will be invited to hold an in-depth analysis and discussion about the current status and deficiencies of China's RMB private equity investment fund, the legislation and regulation, the direction and substance of the regulation, and how to impose supervision and regulation on the fund. Their insights will inspire the development and improvement of rules governing Chinese-style private equity fund raising and will indicate the direction of development Chinese equity fund investments will take for the next decade.

18:00-20:00 Cocktail Party (available to all participants)