Some of the returning Chinese have been away from the market for too long. Here CEOs spend half their time cultivating business relationships and government relationships. Quon agrees with the wisdom of mixed teams, as the overseas staff will be familiar with crucial tasks like writing a business plan. According to published reports, about 50-60 technology shares will be in its first placement. In theory, the bourse would allow easier listing rules for companies with little or no track record and no strong revenue stream.
All interested parties offer strong support for the idea.
The question is timing. Friends and family will continue to fund most start-ups, as is often the case in the United States and elsewhere. In addition to the recent proliferation of China-focused venture capital funds, both foreign and domestic, we are seeing more IT companies and university groups getting involved in seed stage funding. Recent VC networking events here in Beijing have been very well attended, which may also be an indicator of increasing activity. As for companies listing on the Nasdaq and other overseas markets, Wang believes that the successful listing of SINA and other publicly traded Chinese Internet companies may make it easier for officials in Beijing to stomach additional listings.