Asia Business Conference - Investment Opportunities and Strategies
March 28th, 2008 | Published in Uncategorized
I attended the panel discussion on Investment opportunities and strategies.
The panel includes VC, private equity investor, entrepreneur and consultant, all with many years’ experience in the China market.
The panel discussed the rapid growth of the Chinese economy and the trend of it decomposing from the US and Europe economy due to China’s increasing domestic consumption.
They shared insights on the investment opportunities in the China market. In recent years, while the overall foreign investment in China is increasing, the number of US and European investments is decreasing. Besides foreign investments, China’s domestic investment pool is large and growing. In big cities like Beijing, Shanghai and Suzhou, entrepreneurs can get local investor funding of around 100million RMB easily.
For foreign companies that are considering expansion into China market or entrepreneurs who want to start a business in China, they need to consider the newly published property laws, labor laws and other government regulations.
The panel also discussed the growing trend of investing on consumer product. VC firms are still focusing on investing in high-tech companies rather than consumer product companies because of the higher ROI high-tech companies generate. They consider entry barrier seriously, which can be either technical excellence or network effect. Compared to VCs, private equity funds are more interested in consumer product, because their typical expected ROI is 3 to 5 times while VCs are looking for ROI of about 20 times.
