Often it is only when the operation of the business has been notably affected that these entrepreneurs will slowly begin to understand our initial suggestions. A certain amount of time is required before they are able to meet our expectations for business operations and management practices.

In March 2006, you said that it was not yet time to invest in the 3G industry, but in July, WI Harper chose to invest in 3G.CN. What changed your mind in this brief four-month period? What are your views on the prospects of 3G applications in China?

3G technology and 3G services are actually two related but dissimilar ideas. WI Harper's main point of investment is still hi-tech service-oriented businesses. Relatively few of our investments are in pure technology. 3G.CN is not a pure technology investment. It's a WAP website that offers services for the application of 3G technology.

We are currently in the 2.5G stage. The technology and hardware for 3G is still immature, but 3G.CN provides relevant services for the technology that is already in use. When the time comes for true 3G technology to make its debut, this company will surely prosper. It has a lot of development potential.

3G has an unquestionably bright outlook in China due to the exciting possibilities it offers, including watching TV, listening to music, reading the news and novels, all via mobile handsets. For the mass of netizens, Sina.com, QQ.com and Netease.com are the major portals. In the future, 3G.CN will become the Sina.com of the cell phone network, with subscribers having access to all the same services as their netizen counterparts.

You personally have a background in the life sciences, which happens to be another 21st century industry with a very bright future. Shenzhen-based medical technology company Mindray recently had its IPO on the New York Stock Exchange, raising $270 million. What is WI Harper's view on the investment outlook in the field of life sciences?

In the United States, venture capital firms invest in technology, but in China, the technology in many industries has yet to develop the competitiveness needed to thrive in the global market. New technology does not necessarily equate to superior technology. Therefore, in China, the majority of our investments are in the service industry, at the application level of new technology. A large part of our investments is also focused on products and services that are sold to the end consumer. We are their customers as well as their investors.

WI Harper is not currently considering investments in the research and development of new medicine, as this field is extremely demanding in terms of time and expense, as well as having incredibly strict and complicated procedures for testing and approval. Regarding the field of life sciences, WI Harper is mainly concerned with two areas: One is "medical devices" such as imaging equipment, which can be manufactured in a relatively short period of time and has huge space for growth in the Chinese market. At this point, however, WI Harper's sixth fund has yet to enter this sector. The second area is that of "health care services," in which we are currently investing in iKang.com.

What do you feel is China's current investment hotspot?

It's not difficult to determine China's next investment hotspot. You need only look at the sectors from which companies are going public. Energy and budget hotel chains, for example, are businesses absolutely exploding into the market. But at times like these, we must make our own decisions in accordance with our own style of investment. When everyone is buying you should not think to sell. NASDAQ and other overseas markets will only accept the top one or two companies in each sector. Investments in the rest can only be realized through mergers or acquisitions. Only by investing in the top businesses can the proportion of realized investments be significantly increased.