It is very important that we 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 business enterprises. It will also create a closer connection between the developed and developing nations.

Small to medium sized enterprises in China still face capital shortages despite the rapid growth of its domestic capital markets. Private equity funds have become a lifesaver for these companies. Mr. Deping Hu, Vice Chairman of the All-China Federation of Industry & Commerce, stated that it is a reasonable choice for these companies to exchange equity shares for private capital in order to accelerate their growth.

Private equity can be a catalyst for a company’s development. Growth stage enterprises may have unique business models or possess new technologies, but lack of funds. Private equity firms can provide the necessary financial support. And in doing so private equity will share the returns with their companies either through growth in profits or an IPO.

Mr. Hu indicates that private equity helps increase the options for privately held Chinese companies that need to raise capital. Having adequate capital is important for companies such as Huawei, Haier and Lenovo to grow into international enterprises.