1. Survey and Analysis of China Venture Capital
Industry in 2005
¡¡In October 2004, China Venture
Capital Research Institute set up an exclusive research
team headed by Director Gongmeng Chen. The research
project, which lasted three months, was carried out
through questionnaires and telephone interviews with
the aim to produce an in-depth analysis of the developments
of China venture capital industry and capture the new
development trends of the industry. The research team
has extensively collected the first hand data on the
financing status, investment progress, project management
and investment performance etc. of major Chinese VC
institutions up to the end of 2004. Based on the analysis
and research results, the institute has prepared the
first research report, the content of which covers the
process and description of the research, conclusion
and directory of surveyed companies etc. and summarized
the nine major features of China¡¯s Venture Capital Industry
in 2004. The report was disclosed to the public in March
2005 and served as a valuable reference book for understanding
the general development of China¡¯s Venture Capital Industry
in 2004 from various aspects. Various financial and
economic media has covered the publication of the research
report.
2. Analysis and Policy Suggestions
on the Impact of Decree No.11 and No.29 Issued by the
Stage Administration of Foreign Exchange on China¡¯s
Venture Capital Industry
¡¡In response to the impact
of the two decrees respectively promulgated on January
and April 2005, Circular of the State Administration
of Foreign Exchange of the People's Republic of China,
On Regulating the Monitoring Works of Currency Circulation
in Border Trade (Decree No. 11[2005]) and Circular of
the State Administration of Foreign Exchange of the
People's Republic of China, On Relevant Issues of Improving
Foreign Exchange Administration in Foreign Funded Merge
and Acquisition(Decree No. 29[2005])(hereafter referred
as the ¡°two decrees¡±), the Institute formed a research
team led by Dr.Chen in the middle of June 2005 to collect
first-hand materials through seminars(6.30 Roundable.Shenzhen),
interview of government officials and questionnaires
etc.; at the same time, it has conducted longitudinal
and diatropic comparison and analysis of the red-chip
companies listed in NASDAQ and Hong Kong Exchanges and
Clearing Limited as well as VC-fund supported listed
companies in the Shenzhen SME Board. The report has
made a profound analysis of the background, survey process,
influence, extent and policy suggestions etc. of the
two decrees and conducted an extensive, objective and
in-depth study on the impact of the two decrees. On
September 8, it has gathered various notable experts
and scholars from both the community and academia to
exchange their insightful ideas and carry out argumentations
on the research result in Beijing. This event has gained
wide recognition from high-ranking officials from Ministry
of Science and Technology and State Administration of
Foreign Exchange etc.
3. Constructing China¡¯s Growth
Enterprise Market: Timing, Operational Plan and Analysis
of Advantage and Disadvantages
¡¡The launch of the Shenzhen
SME Board in May 2004, is the first step for the gradual
establishment of China Growth Enterprises Market (GEM)
by raising tens of billions of capital for SMEs, which
played an important role in this process; starting from
May 2005, the second pilot equity division reform scheme
of China¡¯s capital market has kicked off, expanding
from the Main Board Market to the SME Board. The SME
Board will be the first to realize ¡°separate old from
new¡± and to create exit channels for venture capital
funds and facilitate business acquisition and merges.
Company Law, Securities Law and Administrative Measures
on Venture Capital Funds etc. are about coming out after
the amendments. Capturing the new trends of the VC community,
the Institute seize this occasion to bring together
senior officials and researchers from the Research Office
of the State Department, Ministry of Science and Technology,
China Securities Regulatory Commission and Shenzhen
Stock Exchange etc. and set up a research team headed
by Prof. Siwei Cheng as the general councilor. The research
team has extensively referred to the research materials
on overseas main Growth Enterprises Markets and conducted
longitudinal and diatropic comparisons of both successful
and unsuccessful GEMs, formed the stage research report
in August 2005, which gives an overview of the domestic
GEM. In September, the Institute has gathered a team
of experts to share their opinions on the research results.
From the end of August 2005 to the end of October, the
research team entered into the critical stage and a
comparative analysis was carried out, covering the prospects
of related laws and regulations, launch time of the
GEM from the perspective of timing, operational plan,
as well as the analysis of its advantages and disadvantages.
All of this work is base on the objective, elaborate
and authoritative datum. And it also has profoundly
explored the advantages and disadvantages of the development
of the Growth Enterprises Market. The team is planning
to formulate a relatively complete general report at
the end of October or the beginning of November and
submit it to the relative decision-making departments
for reference after the discussion of the expert team.
4. Cases study
¡¡Cases study and analysis
is not only the summary of the previous successful experiences,
but also the reflections on the past failures. Implications
from classical cases can work much better than those
lengthy theories. The Institute places a great emphasis
on case study and analysis and seeks to provide a profound
¡°apocalypticism¡± for VC practitioners and academicians
through deeply exploring the rules and implications
of the cases.
Since early September 2004, the Institute has collected
tens of cases through field investigations, interviews
and direct collections; after the preliminary research
of the cases, it has screened out 18 cases that cover
how VC enterprises carry out financing, innovation on
investment models of VC institutions, circulation of
venture capital, value-added service from venture capital,
business operations of incubators and venture capital
jointing with tradition industries etc.
To better highlight the common implications between
the cases, we have synthesized some of the cases and
reduced them into 11 case studies which have typical
implications. The review re-organizes the structure
of the cases, pinpointes its implications and underlying
messages, focus on exploring the deeper meaning of the
stories, and provide detailed and lively materials for
those entrepreneurs and venture capitalists. It also
enrich the research work of China¡¯s venture capital
industry.
5. How to Effectively Utilize Venture Capital
to Accelerate the Commercialization of the Technological
Results from Universities: System, Market and Implementation
Plan
¡¡This research compares the
technology transfer system of the Universities in China,
U.S and Japan, studies the institutional obstacles of
transformation of universities¡¯ technological results,
analyzes the effect mechanism and operational models
on how venture capital stimulates the transformation
of universities¡¯ technological results and investigates
the researchers¡¯ start-up companies and university derivative
enterprises. According to this, the research has also
designed practical policy suggestions and corresponding
implementation plans. The major content of the research
is as following:
1. International comparison study on university technology
transfer model and management system
2. Research on Chinese universities technology transfer
system-cases study
3. Research and investigation on university derivative
companies
4. Research on venture capital and university technological
result transfer
6. Ways and Solutions for Chinese Venture Capital Institutions
to Walk Out of Difficulties
¡¡The research Studies and
investigates the operational obstacles and policy restrictions
on VC institutions with different backgrounds, analyzes
the operational and strategic transformation of Chinese
VC institutions base on the development trends of China¡¯s
economic policy environment., advances the suggestions
and corresponding policies on the changes of the institutional
environment of venture capital. The major content of
the research is as following:
1. Research on the operational mechanism of Chinese
Venture Capital institutions
2. Evaluation of the impact from China¡¯s laws and regulations
on venture capital industry
3. Comparison of the innovation models of Chinese venture
capital institutions
4. Constructions of a multi-level capital market and
development of venture capital industry
7. The Researches on In-depth Study on Venture
Capital Industries
¡¡The Researches select spotlight
venture capital industries, analyze industrial structure
and competition status and research the timing, models
and operational plans for venture capital to be involved
through industrial value chain analysis. The main research
work includes
1. Research on investment value of certain Chinese spotlight
industries
2. Research on value chain of spotlight industries and
the critical elements for success
3. Cases of venture capital investment operations for
spotlight industries
4. Research on venture capital investment operational
models for spotlight industries
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