Sequoia China is kind of a joke in China. Countless epic fails. But after all, the Chinese capital market could simply be too capricious and treacherous for foreign firms to explore. Or, more broadly, the VC model for the Internet is largely broken in China. There are effectively hardly any laws protecting venture business in China. Greedy partners could steal the money and disappear. The government could shut down your industry over night. i.e. the online video sharing business in China. And Sequoia China may have fallen into every pitfall possible out there.
I don't see much evidence that the company was funding growth oriented small venture plays in China. Their role was to help Chinese companies line up foreign IPOs and cash out.