On June 1, the twentieth CoStone Master Forum themed with "Economic Transformation & Business Revolution" kicked off at the world's highest concert hall the Sky Concert Hall, located at the T7 building of One Shenzhen Bay in Shenzhen. Dr. Jia Kang and six other speakers from the academic and business circles were invited to share their views on business revolution.READ
On May 17th, the 7th Chinese Venture Capital Summit was held by Securities Times in Shenzhen.
“The traitorous spirit and inclusive industries make Shenzhen, an immigrant city, the most to Silicon Valley-like in the world, where lies the future of China’s entrepreneurship.”READ
On March 5th, Nio (NIO.NYSE), the leader of China’s new energy vehicle (NEV) start-ups, announced a net loss of $9.3B in its annual report. The report also predicted far weaker growth of sales in the future than had been expected, and its factory-building plans are put on ice. Later, its shares plunged 31% amid a 7-day losing streak and its market value evaporated by $4.21B. The number of NEV start-ups have long exceeded 100, while most of them are going to face an existential crisis in 2019. NEV as well as autonomous driving is absolutely a promising direction for investments. But there are no NEV firms worth of an investment so far.READ
CoStone Capital has always been socially conscious and actively involved in the country's poverty alleviation strategy. CoStone Capital donated $0.3Mn to support the poverty alleviation project of “Photovoltaic Farm” in Fenxi, Shanxi Province in 2018, as an active response to the call of Asset Management Association of China (AMAC) . This poverty reduction project was expected to generate more than ¥2.8Mn of income each year and help about 800 households to get rid of poverty.
The roadshows for Shenzhen Angel FoFs signing and Baby Fund investment project was held in Wuzhou Hotel on the afternoon of November 16. Zhang Wei, chairman of CoStone Capital, attended the signing ceremony.READ
On November 20, 2018, the SSE Equity Investment Forum and the 7th "Financial Assets" award ceremony hosted by Shanghai Securities. CoStone Capital won the "Outstanding Investment Institution Award".READ
In recent years, government guide funds have gradually become a strong force in the PE market. By the end of 2017, the total target size of domestic government guide funds had reached about ¥10 trillion, and about ¥3.5 trillion had been allocated.READ
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