January 11, 2007, the All China Federation of Industry & Commerce, the Association for Corporate Growth (ACG), and the Tianjin Municipal People’s Government signed a joint sponsorship agreement for the establishment of the First China International Private Equity Forum.
Mr. Deping Hu, Vice Chairman of the United Front Work Department of CPC Central Committee and Vice Chairman of the All China Federation of Industry & Commerce, Mr. Xianglong Dai, Tianjin Municipal Party Committee Vice-Sectary and the mayor of the Tianjin Municipal People’s Government, Mr. Patrick Hurley, the chairman of the board of director of ACG attended the signing ceremony and gave speeches. Mr. Xianglong Dai met Mr. Deping Hu and Mr. Patrick Hurley separately prior to the ceremony. Mr. Yuanlong Zhang, the deputy director of the Tianjin City People’s Congress, and the director of Tianjin Federation of Industry & Commerce, Mr. Jindu Cui, the Vice Mayor of Tianjin city, Mr. Hourong Ye, Vice Chairman of Tianjin People’s Political Committee, Mr. Ronglin He, the General Secretary of the Tianjin Municipal People’s Government，Mr. Honglu Liu, Director of the Membership of the All China Federation of Industry & Commerce, Mr. Wei Wang, Chairman of China M&A Association, and an ACG Beijing representative also attended the meeting and signing ceremony.
Mr. Xianglong Dai, on the behalf of the Tianjin Municipal People’s Government, welcomed guests and dignitaries and thanked All China Federation of Industry & Commerce and ACG for their time and efforts thus far in organizing the Forum. Mr. Xianglong Dai said using private equity funds to assist in the growth of small- to medium-sized enterprises is an effective use of capital from developed countries. The First China International Private Equity Forum in Tianjin will open new capital raising channels for China’s small- to medium-sized enterprises, enhance cooperation between Chinese companies and private equity funds, attract foreign capital and promote economic globalization.
Mr. Xianglong Dai stated 2006 was a great year for Tianjin. The Central Government and State Council have made Tianjin Binhai an area of focus in the National Strategic Plan and approved Binhai New Area as an experimental district for national reform. The State Council also approved Tianjin’s city development plan and elevated Binhai New Area to national-level status to test and implement new reforms, laws and policies. Tianjin has become one of the most important destinations for local and foreign enterprises and financial institutions in the nation. The comprehensive reform program implemented in Binhai includes nine sections with the financing reform being one of the top priorities. Mr. Xianglong Dai said that the key area of financial reform is the improvement in the process of raising capital. “Last year, we established the Bohai Industrial Investment Fund and its Fund Management Corporation. We believe the First China International Private Equity Forum will be successful as a result of the sponsorship of ACG and the All China Federation of Industry & Commerce. This forum will open capital raising avenues for China’s small- to medium-sized enterprises, create investment opportunities for private equity funds and give our companies the experience of attracting and utilizing private equity funds.”
Mr. Deping Hu said that it was very important to increase cooperation between enterprises and banks in China. The First China International Private Equity Forum will promote this cooperation and help in the development of China’s enterprises. In addition, it will connect developed and developing nations. During the preparation stages, the three sponsors have been working closely and effectively. Each sponsor has demonstrated its trust and commitment to the forum. He stated that the timing and location of this forum is excellent as the new financial reforms and policies approved by the central government are being successfully tested, implemented and executed in the Tianjin Binhai New Area. We hope this forum will become a model for financial reforms for the entire country.
Mr. Patrick Hurley, on behalf of ACG thanked All China Federation of Industry & Commerce and Tianjin Municipal People’s Government for their contributions and support in organizing the forum. He commented Tianjin City was an excellent choice for the forum and praised the city government for being instrumental in preparing the event. Mr. Hurley emphasized the importance of the private equity industry, “We are excited to introduce the concept of private equity financing, successfully used in America and Europe for many years, to China and promote cooperation between private companies and investors in capital raising efforts.”
The First China International Private Equity Forum will be held on June 6-8, 2007 in Binhai New Area in Tianjin and will be the first international financial forum for small- to medium-sized businesses in China. The forum will use popular American capital raising models adapted by ACG (Capital Connection and Deal Source) to connect potential investors to companies seeking capital. The event will provide opportunities for approximately 1000 Chinese enterprises to interact directly with over 100 international investment funds and attend panel discussions and exhibitions hosted by financial services companies and intermediaries.
Private equity funds typically invest capital in exchange for equity shares of private enterprises. Future public offerings are one means of an “exit” strategy private equity funds use to realize their investment returns. Tianjin’s Small Business Finance Service Company and China Mergers and Acquisitions Group (part of China A&M Association), will create an official website for the forum and offer services to both investors and companies.
The Association for Corporate Growth is a premier global association for professionals involved in corporate growth, corporate development and mergers and acquisitions. Today ACG has more than 12,000 members including over 700 small- to medium-sized investment funds with capital ranging from $200 million to $1 billion. ACG has successfully organized 57 financial forums and has a well-recognized brand name in global capital markets.