President Cai Lei of JD Capital Attends and Addresses China Venture Capital & Private Equity Forum
On June 17, the opening ceremony of the 19th (2017) China Venture Capital & Private Equity Forum, the highest-profile flagship event in China’s venture capital (VC) sector, was officially held in Guangzhou, Guangdong Province. Hu Chunhua, member of Politburo of the Communist Party of China (CPC) and CPC Secretary of Guangdong Province, announced the opening of the forum; Chen Changzhi, Vice Chairman of the Standing Committee of the National People’s Congress and Chairman of the Central Committee of the China Democratic National Construction Association (CDNCA), Wan Gang, Vice Chairman of the Chinese People’s Political Consultative Conference, Minister of Science and Technology, and Chairman of the China Zhi Gong Party, and Ma Xingrui, Governor of Guangdong Province, attended and addressed the opening ceremony. Before the ceremony, Hu Chunhua, among other officials, met with distinguished guests present at the forum, President Cai Lei of JD Capital included.
In the afternoon of June 17, representatives from regulators, exchanges, industry associations, and equity and VC institutions made speeches at the executive forum. On behalf of PE firms, President Cai Lei delivered a speech titled “Implementing “Bellwether Plan” and Developing China’s Economy”.
Cai Lei stated that, at present, China’s PE industry has abandoned the models featuring growth-oriented and pre-IPO investments, and entered the new stage dominated by consolidation-oriented investment. During this phase, the theme in PE industry is the “1+N” consolidation-oriented investment model. To be more specific, the investors will choose leaders or quasi-leaders (i.e. “1”) with great potentials in subsectors as the investment targets, enhance their endogenous growth, and help them continuously consolidate by acquiring enterprises (i.e. “N”) in the industry, along the industry chain, and in and around China.
With “Bellwether Plan”, JD Capital is systematically carrying out consolidation-oriented investment. According to Cai’s analysis, the development of enterprises can be broken down into three stages: potential industry leaders (with a market value/valuation of USD 100 million- USD 1 billion), emerging industry leaders (with a market value/valuation of USD 1 billion- USD 10 billion), and industry leaders (with a market value/valuation of more than USD 10 billion). Among them, industry leaders are the most competitive leading and key enterprises in the whole economy. Currently, there are only 120 industry leaders with a market value of more than USD 10 billion in China, while 515 ones in the US. With its growth, China’ is coming closer to the US in economy, which brings China closer to the US in the number of industrial bellwethers as well. In the next five to ten years, it is expected that there will be 200 to 400 more industry leaders in China. The mission of JD Capital is to help more than 100 emerging industry leaders in China to grow into industry leaders, so that they can become a pivotal force in the industrial transformation and upgrading of China. JD Capital’s investment in them will be a significant boost for the development of China’s real economy.
JD Capital Wins Several Awards, Including Top 20 Most Influential Investment Institutions of the Year
The China Venture Capital & Private Equity Forum presented its first “Golden Investors Awards”. JD Capital won three awards on the ceremony:
- Top 20 Most Influential Venture Capital PE Firms in China
- Top 20 PE Firms in Advanced Manufacturing of the Year 2017 in China
- Top 20 Most Influential Investors of the Year 2017 in China – Cai Lei
About China Venture Capital & Private Equity Forum
Held once a year, the China Venture Capital & Private Equity Forum is the highest-profile event with the largest number of participants in China’s VC sector. It can each time bring thousands of participants together, including government leaders, domestic and foreign venture capitalists, renowned entrepreneurs, senior executives from financial intermediaries, and journalists. The forum was established by Cheng Siwei, the Vice Chairman of the Standing Committee of the Ninth and Tenth National People’s Congresses and former Chairman of the Central Committee of CDNCA, who was dubbed as “the Father of Venture Capital in China”.
The 2017 China Venture Capital & Private Equity Forum is co-organized by CNDCA, the Ministry of Science and Technology, Guangdong Provincial Government, and Shenzhen Municipal Government. Themed on “A New Economy Driven by MEI, A New Era of Capital”, the forum presents high-level discussions of the development of China’s PE and VC industry. With the 19th (2017) event, the forum makes its debut in Guangzhou. From this year, it will be held in Guangzhou and Shenzhen in alternate.