It is always dangerous to try to make long-term forecasts during volatile times – and there hasn’t been a more volatile time in the Chinese private equity and venture capital market since it began opening to foreign investment in the last decades than that of the last several months.

Of course, this is not to say that one should discount lessons learned from recent experience even in times as unique as these. The current global financial crisis will certainly lead to substantial changes in markets worldwide, and the Chinese PE/VC market will be no exception. Investors and entrepreneurs alike are busily examining every industry and business model in front of them, testing for resilience in the face of widespread financial distress, looking for counter-cyclical performance indicators, etc.

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