In 2016, Mindray (300760.SZ) delisted from the US and completed capital increase and share enlargement. At that time, its P/E was over 30 times, deterring many institutions. When Mindray’s founder Xu ...READ
At the 2018 China Equity Investment Summit Forum & the Second Golden Bull Award for Equity Investment in China’s Ceremony held on November 17th, CoStone Capital Zhang Wei delivered a keynote speech titled The Spring of Institutional Investors Is Here. In his speech, he said 5% listed companies have met the criteria of value investment for which he came up with 7 measurements.READ
“These measures will effectively bring us more vigorous SMEs and tech companies. All bets are off.” said Zhang Wei.READ
A few days ago, the China Securities Regulatory Commission (CSRC) encouraged private equity funds to buy shares of listed companies and get involved in their M&As by participating in non-public offerings, transfer agreements, and block trades. CoStone Capital says some companies on the secondary market already have good investment value, and it on the lookout for the opportunities of their mergers and acquisitions.READ
“What’s new about the new economy? First, chronologically, the industries which emerged and boomed in the last five to ten years, like NEVs, semiconductors and 5G, belong to the new economy. Second, in terms of problem solving, new models and new business forms like mobile payment, are characterized as the new economy industries.READ
Zhang Wei emphasized: when we invest in a company, what we invest in is its entrepreneurs.READ
When you truly understand a company，you should go straight to make an overweight investment in it.READ
Reasons behind the rapid growth of unicorns are huge, real demand, a moat around them and advantages of technology and product. But eventually, they have to compete for market share with their management. Unicorns that take the lead in business model are even more unreliable than those that pull ahead in technology because business model is easier to replicate due to the ways they share. Reasonable valuation should also be taken into consideration in an investment. As primary-market investors, we have to evaluate the company’s profitability and potential for growth. If it is overpriced, it’s just a bubble.READ
Tao Tao was invited to the 5th China Culture and Finance Innovation Summit held by the Beijing Cultural and Creative Industry Promotion Center on October 26, 2016, and delivered a keynote speech on Bolster the Cultural and Creative Industry with Capital.READ
In fact, CoStone is one of the first PEs to keep a watchful eye on the M&E investment, ever since the newspapers in 2005. CoStone has been paying great attention to the changes in this realm every single day for decades. From newspapers and broadcasting to the Internet and MICT (Mobile Information Connectivity Technology), CoStone lived the influence of these changes.READ
On April 14th, Zhang Wei delivered a keynote speech titled "Avoiding Mediocrity" at the CoStone Capital 2018 Annual LP Conference. By reviewing the history of CoStone Capital, he explained how to avoid mediocrity as a company as well as an investment firm.READ
China has surely entered a post-industrialized society with an increase in the middle class. Under such social background, how should investment firms seize the opportunities? Which areas are really worth paying attention to? What is the method of investment? At today’s 2018 CoStone Capital Investor Annual Conference, Chairman Zhang Wei had given CoStone’s answers to these questions.
The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.
Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.
Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.
Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.
These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.
For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.
So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.
At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across