China Equity Investment Report, 2009-2010

Equity investment includes private equity (PE)4.3 Stages
investment and venture capital (VC) investment. In4.4 Regions
2009, there were 542 equity investments occurred in4.5 Chinese and Foreign Investors
China, including 114 PE investments and 428 VC5. Equity Investment in Key Chinese Industries
investments; the equity investment valued US$22.45.1 Healthcare Industry
billion, average PE investment was US$164 million, and5.1.1PE
average VC investment was US$8.8 million. The5.1.2 VC
remarkable 19:1 gap between average PE and VC5.2 IT Industry
investments mainly resulted from the fact that PE5.2.1 PE
investments are often made in the enterprises that5.2.2 VC
are making profits and need larger amounts of5.3 Energy Industry
money for mergers and reorganization, while VC5.3.1 PE
investments mostly are financial investments made in5.3.2 VC
the enterprises that are developing or expanding their5.4 Internet Industry
business and require smaller amounts of money.In5.4.1 PE
2009, in terms of the number of equity investments5.4.2 VC
made in China, the manufacturing industry got the5.5 Media & Entertainment Industry
largest share (19%), followed by the IT, Internet,5.5.1 PE
energy, and healthcare industries; in terms of the5.5.2 VC
amount of equity investments, the financial industry6. Key Private Equity Investment Companies
got US$18.36 billion, followed by the chain operation,6.1 Carlyle
energy, manufacturing, food and beverage industries.6.1.1 Investments
From 2009 to 2010, among the equity investment6.1.2 Carlyle Asia Partners III
companies in China, PE investment companies are6.2 Goldman Sachs
mainly foreign-funded companies, while VC6.2.1 Profile
investment companies are generally Chinese-funded6.2.2 Investments and Exits
companies. The reason for foreign-funded companies6.2.3 Preference for China after the Financial Crisis
holding a leading position in the PE sector is: PE6.3 CDH
investments often involve larger amounts of money,6.3.1 Profile
and compared with domestic companies, foreign6.3.2 Investments
companies have more solid financial strength. Famous6.4 Warburg Pincus
PE investment companies include The Carlyle Group,6.4.1 Profile
The Goldman Sachs Group, Inc., and CDH6.4.2 Investments and Exits
Investments. The reason for Chinese-funded6.5 New Horizon Capital
companies holding a leading position in the VC sector6.5.1 Profile
is: domestic equity funds were encouraged by the6.5.2 Investments
launch of GEM, while foreign companies were6.6 Baring Private Equity Asia
relatively cautious in venture capital activities due to6.6.1 Profile
the financial crisis. Active VC investment companies in6.6.2 Investments and Exits
2009 included Shenzhen Capital Group, Legend Capital6.7 CCB International
and Shenzhen Fortune Venture Capital Company6.7.1 Profile
Limited.6.7.2 Investments
Shenzhen Fortune Venture Capital (Fortune VC) was6.7.3 New Funds
established on April 19, 2000. Now, it manages seven6.8 TPG
funds, and is entrusted to manage the fund of nearly6.9 Prax Capital
RMB3 billion. By June 3, 2010, Fortune VC had6.9.1 Profile
invested in over 70 SMEs , 11 of which went public6.9.2 Investments
successfully, including COSHIP Electronics, Talkweb6.10 Beijing Hony Future Investment Advisor Limited
Information System, Joint-Wit Medical &6.11 Hopu Investments Management Company
Pharmaceutical, Fujian Sunner Development, EVELimited
Energy, Aier Eye Hospital Group, ChinaNetCenter,6.12 Bain Capital
BlueFocus Communication , Sumavision Technologies,6.13 CITIC Capital Holdings Limited
H&T Intelligent Control, and Kingold Jewelry6.14 Trustbridge Partners
(NASDAQ-listed). The eleven enterprises plus the6.15 Temasek Holdings
Xi'an Dagang Road Machinery that was approved the7. Key Venture Capital Investment Companies
listing by China Securities Regulatory Commission on7.1 Shenzhen Capital Group
May 28, 2010, are expected to deliver at least a7.1.1 Profile
15× ROI on average.7.1.2 Investments and Exits
 7.2 Legend Capital
Table of Contents7.2.1 Profile
 7.2.2 Investments
1. Equity Investment Overview7.3 Shenzhen Fortune Venture Capital Company
1.1 DefinitionLimited
1.2 Classification7.3.1 Profile
1.2.1 Private Equity7.3.2 Investments
1.2.2 Venture Capital7.4 Kunwu Jiuding Capital Company Limited
1.2.3 Difference between Private Equity and Venture7.4.1 Profile
Capital7.4.2 Investments
1.3 Equity Investment in China7.5 Orchid Asia Group Management Limited
1.3.1 Private Equity7.5.1 Profile
1.3.2 Venture Capital7.5.2 Investments
2. Equity Investment Policies in China7.6 SAIF Partners
2.1 National Policies7.6.1 Profile
2.2 Regional Policies7.6.2 Investments
3. Equity Investment in China, 20097.6.3 Mass PRIM Investment in SAIF Partners IV LP
3.1 Scale7.7 China Science and Merchants Capital Management
3.1.1 Private EquityCompany Limited
3.1.2 Venture Capital7.7.1 Profile
3.2 Industries7.7.2 Investments
3.2.1 Comparison of PE and VC by Number of7.7.3 RMB20 Billion of Liaoning Coastal Economic Zone
InvestmentsDevelopment Fund
3.2.2 Comparison of VC and PE by Amount of7.8 IDG Capital Partners
Investments7.8.1 Profile
3.3 Stages7.8.2 Investments
3.4 Regions7.9 Intel Capital
3.4.1 PE7.10 Sequoia Capital China
3.4.2 VC7.11 Green Pine Capital Partners
3.5 Chinese and Foreign Investors7.12 Tiantu Capital
3.5.1 PE7.13 Cowin Capital
3.5.2 VC7.14 iD TechVentures
4. Equity Investment in China, 20107.15 SB China Venture Capital
4.1 Scale7.16 DFJ
4.2 Industries8.