“This may be the golden era for start-ups for the sound policies, social, industrial environment compounded with reform and opening up,” said Zhang Wei, the CEO of CoStone, at the 2016 CoStone Annual Meeting. “Even everyone can’t be as successful as Jack Ma and Pony Ma, it is true that all great companies come from small ones.” 2015’s huge fluctuations in the stock market signal an undergoing structural reform in China’s macro-economy.
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Securities companies predict stock index annually, but they usually fail. Even in May, some of them still banged the drum for a rising stock market. Later in a speech, they said, “as we have predicted”. Well, they just skip all the wrong predictions.
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The business scope of China’s media companies is limited by restrictions. In this context, it is uneasy for Huayi Brothers Media to increase its operating revenue from 2006’s 124 million RMB to last year’s 2.39 billion. Huayi has expanded its films and TV series to series of products covering the whole entertainment industry. This expansion in products is contributed by its diversified financing and mergers.
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China’s private sector is gaining momentum and the Chinese public has wakened to entrepreneurship. These are always the true economic drivers of China. We can expect better economic performance in this era.
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The unique governments’ emphasis on GDP, hard-working Chinese people, and materialism over the spiritual pursuit, perhaps, make the Chinese nation stand out in the global economic stage. European countries are welfare states; Indian philosophy teaches the people to look back. It is nearly impossible for these countries to mobilize resources nation-wide because unlike China, their governments are less powerful and their peoples less hard-working.
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The success of a PE investment is highly related to the expertise of the management team and its experience in investment and research. Their competence is crucial to winning the fierce competition in this mixed PE industry.
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CoStone’s investment in biomedicine is increasingly sophisticated. To this point, about 1/3 of investments are in biomedicine companies. In Chen Yanli’s words, a CoStone partner, it is the year-long experience that lends CoStone a big picture in investment, beyond mere opportunities. Today, CoStone’s investment in biomedicine is more systemic and professional, covering the whole industrial chain.
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Zhejiang Conba paid 994.5 million yuan to purchase a 51 percent share of Guizhou Bate after 4 months' stock suspension. It is one of the largest domestic M&A cases in the pharmaceutical industry, and it is also the largest domestic M&A case in the venture capital industry during April.
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Zhejiang Conba paid 994.5 million yuan to purchase a 51 percent share of Guizhou Bate after 4 months' stock suspension. It is one of the largest domestic M&A cases in the pharmaceutical industry, and it is also the largest domestic M&A case in the venture capital industry during April.
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After six years since the establishment of the NEEQ, only six companies succeeded in transferring to the SMEs board and STAR board, because they were fully qualified to go public. “The direct beneficiaries of this expansion are the brokers instead of SMEs, VCs and PEs. Brokers will thus gain enormous extra revenues except for underwriting and recommends.” said Han Zaiwu.
READThe 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
