The 9th Global PE Beijing Forum, the biggest and most important platform for the private equity (PE) industry in China, was held at the Shangri-La Hotel in Beijing on Dec 2.

The forum was co-hosted by the China Association of Private Equity, the Beijing Municipal Bureau of Financial Work, the People's Government of Haidian District, Beijing municipality and the Beijing Private Equity Association (BPEA).

The 9th Global PE Beijing Forum, the biggest and most important platform for the private equity (PE) industry in China, is held at the Shangri-La Hotel in Beijing on Dec 2. [Photo by Ma Xiaowen/beijingreview.com.cn]

Themed on "Development, Contribution, Innovation", the forum promoted dialogues between the leading foreign and Chinese fund managers, government officers, and institutional investors on the development of China's private equity industry.

Shao Bingren, president of the association, said, "As the scale of the PE market continues to expand, the survival of the fittest is more and more significant. From the perspective of investment, the equity investment funds do not really help the development of the real economy."

Shao added that at present, the government gives strong support to mass entrepreneurship and high-tech industries, especially innovative and high-growth enterprises in the initial stage and growth stages. It also provides a guarantee for the sustainability and selectivity of equity investments.

Shao Bingren, president of the China Association of Private Equity, delivers a speech at the 9th Global PE Beijing Forum on Dec 2. [Photo provided to chinadaily.com.cn]

Management of Funds of Funds was a key topic during the forum. Wang Chao, founder and president of the China Equity Group, released a White Paper on Practical Guidance on Chinese Funds of Funds.

The PE industry also has some hidden dangers. For example, some private equity investment institutions are entering the field of Initial Coin Offerings, Huo Xuewen said, head of the Beijing Municipal Bureau of Financial Work.

He said that private equity investment institutions should minimize their investment in these areas and avoid directions inconsistent with common sense and the direction of financial development.

Wang Chao, founder and president of China Equity Group, releases a White Paper of Practical Guidance on Chines Funds of Funds. [Photo provided to chinadaily.com.cn]