PrivateEquityChina

Hu Exits HInnovation

Vital Images, a US-based NASDAQ-listed company, paid US$18 million to buy HInnovation Inc, a small and medium-sized high-tech enterprise in Zhongguancun Science Park in northwest Beijing.

HInnovation was established by Hu Hui, a returned overseas student, in 2002, with a registered capital US$150,000.

HInnovation's software solutions allow physicians to use personal computers to access two-dimensional and three-dimensional medical imaging applications securely over the Internet.

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China Chip Foundry Poor Debut

"Shares in CSMC Technologies Corp. (0597.HK) slipped 3% during their first day of trading on the Hong Kong stock exchange, reflecting weakness in technology stocks and chip stocks in particular."

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The listing wasnt helped by weak market conditions both in HK and in the US. CSMC had delayed from a planned June IPO and reduced its pricing cutting the capital raised in half from the June plan.

The market just doesnt seem too keen on a "me too" chip foundry.

Shenzhen Powercom Plans US$150M IPO

13 August 2004 Yahoo Finance reports a planned Hong Kong IPO for Shenzhen Powercom a provider of wireless communications systems in the PRC.

"In February, Shenzhen Powercom raised US$26 million by selling an undisclosed minority stake to Japanese venture capital manager JAFCO Co.'s (8595.TO) JAFCO Asia Technology Fun, Standard Chartered Private Equity Ltd. and CDC Capital Partners, the U.K. government's agency for investing in developing economies."

VC Exits! in China

Also of note in the 2 August 2004 China Daily report is the fact that VC's are increasingly able to exit their investments in China.

VC's exited from 36 projects realising over US$200 million. Most exits came from IPO's in the Hong Kong, US and Singapore markets.

A few years ago I recall going to a Venture Capital function in Hong Kong and all everyone was saying is that exits are close to impossible in China. While most VC's will structure off-shore investment vehicles to keep open the possibility of a trade sale, actually completing a sale seems to remain problematic with only a handful acheived to my knowledge.