From: First Financial Daily by Le Yan
Compiler: Fund China

With the TMT (telecommunications, media, technology) concept wave gradually calmed, Innovative Chinese traditional local services in the new market environment by the beginning of PE (Private Equity Fund) concern.

To the service on behalf of the hotel industry as an example. China’s economic development and infrastructure construction projects and the level of the last century the United States 70 years period of rapid economic growth are very similar to the situation , and now a large number of world-renowned hotel management groups are a lot during that period was rapid growth opportunities, also emerged against the driver, the family travelers, Business elderly even the various accommodation brand.

China now is also an opportune time to the development of the service industry. Ctrip, Homeinns, 7 days, Chatea Hanting enterprises and has won the favor of investors is very good note.

Northlight Venture Capital partner Zhou Shuhua, PinPoint Capital Wen Jili said the current investment Hanting, They are also starting to these investors in China’s domestic service industry concerns.

“Technology, services and innovation is I now choose to invest in three key enterprises.” Wen Jili said, China Bohai Rim including the GDP has already reached a certain level, Therefore, the services industries are also worthy of long-term concern to the PE industry.

Many businesses that PE, PE in China to set up local offices and hire local talent, operation also localized, is a highly efficient team will be able to find opportunities of the future. Meanwhile, the PE team of Chinese enterprises “going out” can provide better assistance and services, to reduce business risks.

“Despite China’s investment and financing environment from the overseas market still has some gaps, such as high transaction costs, investment management and the communication between cooperation, but the Chinese investment and financing environment has improved significantly, the future there will be more investors willing to future business focus shifted to China. “Wen Jili said.

They also forecast PE existing overseas financing, investment projects overseas listing of the “two foreign” situation With the Chinese market investment and financing environment is improving day by day and may change. Some PE also said that in the future will be an appropriate time to consider the Chinese mainland for financing and operation of projects listed.

PE industry but also said that due to too many short term capital flow into the China market, So with real investment value of the item is not a lot, is a result of this increased competition between PE. Long term, service enterprises are great potentials for development. Thus in the future China’s service industry continues to be PE favor of the emerging industries.

Copyright Fund China 2008.

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