China has achieved extraordinary success in her economy over the past 25 years with over 9% annual GDP growth on average. However, the dramatic development was gained at the expense of huge capital input, tremendous consumption of resources, low economic efficiency and inferior productivity and serious environmental pollution. Such kind of economic growth model featured as high input and low output is not sustainable. The way for China to achieve sustainable economic development in the next two decades should be based on innovation. Technology innovation, management innovation and system innovation will bring along resources and vitality for the new economic growth model, with Venture Capital being the real engine to power the growth. The development of an innovative economy and experiences from the United States and Israel clearly indicate that Venture Capital will have a great development potential in China. Venture Capital has become strategically important to China's economic growth. However, it has encountered a variety of obstacles, which confined the growth of this promising industry like a roaring lion in the cage.

　　The China Venture Capital Forum 2005 will bring together thought leaders, experts and practitioners from the global Venture Capital communities, to share their creative ideas and valuable insights on six major issues. Discussions are centering on solutions to overcome the obstacles for the nation’s Venture Capital development. The six topics are: (1) Favorable taxation policy for Venture Capital; (2) How can government funds learn from international experiences (such as the Israeli YOZMA fund) to attract private capital and international funding to energize the growth of China’s innovative economy; (3) How to strengthen legal protection of Intellectual Property (IP), resolving IP disputes and enhancing litigation efficiency; (4) How to build a comprehensive legal framework for Venture Capital in China; (5) How to promote the development of China’s M&A market and Second Board market, in order to widen exit channels for Venture Capital, and finally, (6) how to strengthen the notion of credibility among Chinese entrepreneurs to enhance information transparency and corporate governance of business startups. More than 60 speakers from China and abroad will speak at the Forum. Chinese speakers include members of the National People’s Congress (NPC) of China, senior officials and policymakers from the Ministry of Science and Technology, State Development and Reform Commission and State Administration of Taxation; overseas speakers include policymakers from USA, Europe and Israel as well as prominent venture capitalists from China and abroad. Speakers will share their perspectives on relevant Venture Capital issues through in-depth discussions, debates, analyses and interpretations, with reference to the current and typical situations in China.

　　It is estimated that over 300 venture capitalists from China, USA, Europe, Israel and Asia will attend the Forum, along with another 300 fund-seeking entrepreneurs, senior managers from Venture Capital intermediaries, experts, scholars and government officials. The Forum will be a platform for exchange between domestic and overseas venture capitalists, a golden opportunity for direct dialogue between Chinese Venture Capital practitioners and policy-makers, as well as a bridge for venture capitalists and entrepreneurs to meet with each other. The Forum is expected to facilitate Venture Capital firms and high-tech companies in the Pearl River Delta region to reach out for exchange and collaboration with overseas counterparts, to create joint venture opportunities between Venture Capital firms and high-tech companies in Guangdong, Hong Kong and the vicinity.