China's institutional private equity and venture capital market is similar to the U.S. and Europe, but there are important differences. Many of the practices that are taken for granted in such areas as the Silicon Valley has not yet become common in China. There is no information available about the opportunities, entrepreneurs and companies. In addition, Chinese businessmen know little about finance, corporate structure and governance, which requires investors to educate them and to fill the gaps. Identified seven disciplines critical to successful investment in China: knowledge and understanding of the importance of social networks of capital, or guanxi, the understanding of corporate governance and shareholder rights, the ability to manage intellectual property and the ability to adapt business models to local conditions, ability to add managerial and technical value of the new company, knowledge of the legal framework.;, the ability to navigate the complex regulatory environment "Hide
by Ajit Kambil, Victor Wei Long, Clarence Kwan Source: MIT Sloan Management Review 7 pages. Publication Date: January 1, 2006. Prod. #: SMR199-PDF-ENG
