The Shenzhen Private Equity Funds Association (SZPFA) recently held a special training on valuation practices and a closed-door compliance symposium (equity & venture capital) at China Resources Financial Building. The event was hosted by China Resources Capital Management Ltd. (CR Capital MGMT) in its capacity as Vice Chair Unit of the Association's Compliance Committee. The session aimed to provide actionable guidelines and industry best practices for compliant asset valuation across local private equity and venture capital (PE/VC) firms. The event brought together officials from the Shenzhen Office of the China Securities Regulatory Commission (CSRC), members of SZPFA's Compliance Committee, and representatives from leading private fund managers. Key participating institutions included Qianhai Equity Exchange, Shanghai State-owned Capital Investment Co., Ltd., Shanghai State-owned Assets & SOE Reform and Development Research Center, the Shanghai Advanced Institute of Finance (SAIF) at Shanghai Jiao Tong University, Shanghai Electric Group Co., Ltd., and Shanghai Pudong Development Bank Co., Ltd. Additionally, experts from PwC and KPMG delivered online training, attracting over 100 PE and VC institutions to participate virtually.
Opening the event, CR Capital MGMT leadership welcomed participants and introduced the background and agenda of the symposium and training session. They noted that as the private equity industry undergoes strategic transformation, establishing a robust and scientific valuation framework is not only essential for daily fund operations, but also vital for driving long-term, stable industry growth.
During the expert-led training, Zhang Yunyue, Partner at KPMG, unpacked current valuation rules and guidelines. She systematically compared regulatory requirements across multiple dimensions, shared recent policy updates, and analyzed real-world cases—clarifying the core question of "what to rely on" when evaluating assets.
Addressing the "how to implement" side of valuation, Fan Longyi, Partner at PwC, focused on practical execution across three critical stages: pre-investment, post-investment, and deal exit. He shared strategies to navigate common industry bottlenecks and pain points. Building on this, Ni Qing, PwC's Asset and Wealth Management Leader for Mainland China, compared international valuation methodologies with domestic practices, offering global perspectives on market trends.
In the closed-door session, CR Capital MGMT presented key findings and common challenges identified in its preliminary industry research. Attendees engaged in candid discussions on pressing operational issues, including: selecting valuation methods across pre-investment, post-investment, and exit phases; refining data acquisition techniques and related-party transaction valuations; meeting specific LP demands regarding valuation transparency; and managing internal valuation control costs and selecting third-party agencies.
In his closing remarks, a senior official from the Private Equity Supervision Division of CSRC Shenzhen commended the symposium’s practical outcomes and urged managers to prioritize valuation compliance. He highlighted three key imperatives for fund managers: first, to refine internal valuation procedures, build dedicated professional teams, and establish a scientific valuation system; second, to prioritize transparent information disclosure regarding changes in valuation methods and asset values; and finally, to ensure valuation policies remain consistent over time, with any adjustments or value discrepancies backed by reliable data and formal decision-making protocols.
The symposium addressed long-standing pain points in valuation practices, with participants exchanging insights across diverse areas—including pre/post-investment, exits, S-funds, and cross-border deals. Moving forward, CR Capital MGMT will leverage its role as Vice Chair Unit of the Compliance Committee to help refine industry valuation standards and foster the high-quality growth of Shenzhen's PE/VC ecosystem.
