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October 09, 2004

China bubble will burst soon: Sequoia Capital's Valentine

"You're about to see (the China) bubble burst in the next five years, or sooner, that will make our bubble look meaningless," Sequoia Capital partner Don Valentine said at a panel discussion in Palo Alto sponsored by Silicon Valley Bank.

According to SJ Mercury News report (in two versions here and here), Valentine's recent trip to China (as part of a SV Bank led delegation) had "only confirmed his view that Sequoia should stay away from direct investments there".

"China has no laws, no accounting system, bankrupt banks, and according to Fortune, a stock market that is made up of a den of thieves -- different from the ones on Wall Street."