1. “What is allowed does not mean it can be done. What is not allowed does not mean it cannot be done.”

2. Foreigners aren’t allowed to trade A-shares, but you can if you really want. See (1).

3. Doing a local fund is really really tough. Even one of the most establish fund in China IDG-VC don’t have a local fund. This means they incur taxes for all their successful exits but not able to offset it against the loses.

4. The Chinese government is really rich right now. Their companies don’t need your investment (most of the time).

5. Tried out the 5 story entertainment. Level 1 – bath, Level 2 – Food, Level 3 – Entertainment, Level 4 – Massage, Level 5 – Private Rooms. Don’t ask about Level 5.

6. 45-60min gap between meetings is important.

7. Alternate meetings between the east and west side of Beijing is a very bad idea. The time I spent on the cab today is enough to bring me to Tianjin and back.

8. Need to plan out a trip to Tianjin.

Was thinking of spending Day 1 just to walk around the city and to mingle with the locals. But a coffee session with George Guo in the afternoon leads to series of very interesting meetings. (Thanks George!)

I am going to scribble some notes for my own record.

1. Spend more time with CEO 9588.com and Song of Chum Investment. Get a local # before doing so. The latter is very important.

2. Keep an eye on Tianjin. Do something in Tianjin.

3. Setting up a PE fund is difficult in China. No, it is freaking difficult. At least for the next 2 years.

4. 908 is unlikely to be removed (unlike what most outsider thinks). The government wont care if there is 3,000 qualified companies in the queue for Shanghai listing or 1,000 on the new board. (2007, there are about 200+ IPOs in China. It is a 10 year queue…)

5. It is easier for Chinese to invest overseas. It is bloody difficult for overseas to invest in China now.

6. (3) to (5) are closely related to how government is doing foreign money control, which is related to the undervalued Chinese Yuan. They really trying to curb the money flow inwards.

7. Send as much money to China as possible. Keep it in RMB. Currency appreciation + 5.9% FD interest. No safer investment ever against the USD.

8. Related to (7), taking the money of China later might be a problem. But I am not trying to take it out anyway.

9. It is still possible to do China IPO oversea with what they call “spac”. Handful of people knows how to do that. Not sure it is worth it right now tho with the market sentiment.

Spend the last two evening with Dr Zhang Luyang 张陆洋, a professor from Fudan University. He is one of the leading academic on venture capital in China. I learn a lot from him about the venture scene in China and makes me rethink about China in the short time we spend together.

I reach a stage where I know enough to know I don’t really know whats’ going on. So I won’t talk about venture capital in China here like an expert (I am not!).

However, something else he said over dinner is worth repeating. It goes something like this:

“Pick 10 random people from Singapore and China, Singaporeans are likely to be better. But 1 out of 10 Chinese is better than 9 out of 10 Singaporeans”.

Go ponder over it.