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CoStone Annual Meeting 2019

2019.05.09 CoStone Capital Views:


May 9, 2019

CoStone Annual Meeting 2019 with the theme of "Middlegame" kicked off at MGM Grand Sanya, Hainan on April 27. Nearly 300 economists, sociologists, management experts, CoStone Capital investors, representatives of CoStone network companies and elites from various circles attended the meeting.


Prof. Zhou Qiren making a speech

 Professor Zhou Qiren at the National School of Development, Peking University dived into the barriers to the Chinese economy, how China could break down the barriers, and the possibility of making successful breakthroughs.


Professor Wei Sen on the Chinses Economy Undergoing a Great Transformation

 Professor Wei Sen, Director of the Research Institute of Economic Thought and Economic History at Fudan University, is a famous expert in institutional economics. He also has extensive knowledge of philosophy and unique insights into China's economic, social and cultural transformation. His speech was about the Chinese economy undergoing a great transformation. Prof. Wei offered suggestions on further reform measures for sustainable growth in China. As he said, two macroeconomic policies have to be taken to tackle uncertainties: cutting taxes and powering private companies. And most importantly, China must continue the market-oriented reform and the building of a law-based market with determination.

Huang Tao on Opportunities and Challenges of Chinese Brands

 Huang Tao, Founder and Chairman of Lili&Beauty (605136.SH), has a deep understanding of brand building and development. After exploring the uniqueness and importance of the Chinese market, he presented the opportunities and challenges faced by Chinese brands, and proposed his solutions.

Zhang Haimeng on Improving the Organizational Power of Unicorns in the New Economy of China

 Zhang Haimeng, Global Managing Partner of McKinsey & Company, talked about the organizational power of Chinese unicorns. He criticized that the lack of expertise could be fatal for unicorns seeking transformation and upgrading. To solve the problem at the root, their organizational power must be increased.



Prof. Zhou Qiren

Zhou Qiren, a famous economist, is Professor of Economics and Former Dean of National School of Development at Peking University. He received his PhD degree from the University of California Los Angeles (UCLA). He served as a member of the Monetary Policy Committee of the People's Bank of China during 2010-2012. He is a member of the Expert Committee of National Development Planning for the 13th and 14th Five Year Plan, Member of Shanghai Decision-making Advisory Committee, and Member of Entrepreneur Advisory Meeting of Hainan Provincial Government. His research focuses on property rights and contracts, firms and market Organization, monetary and exchange rate, and reform and innovation. He has been rated as the "Most Popular Professor Among Students" at Peking University since 1997.

 Prof. Wei Sen

Wei Sen is Professor in Economics and Director of the Research Institute of Economic Thought and Economic History at Fudan University. He was Deputy Dean of the School of Economics at the University for many years. He holds a bachelor's degree in Economics from Shandong University, a master's degree from the Australian National University, and a PhD in Economics from the University of Sydney. Prof. Wei has interests in the language of economics, ethics, anthropology, jurisprudence, and Austrian economics, particularly Hayek. He has published fifteen books and a range of articles in both Chinese and English. He also translated many English works of institutional economics, game theory, legal theory, and political sciences into Chinese. He is a columnist for the Wall Street Journal (Chinese), Financial Times (Chinese), and other leading media in China

 Huang Tao

Huang Tao obtained his master's degree from the Department of Automation, Tsinghua University in 1998 after when he taught there for three years. He is Founder, Chairman and CEO of Lili&Beauty (605136.SH), a leading online retailer of cosmetics in China. Lili&Beauty has been authorized by more than 50 global brands including Sisley, Olenna, Erno Laszlo, Sulwhasoo, Laneige and Schwarzkopf to run Tmall flagship stores in China.

 Zhang Haimeng

Haimeng Zhang is Global Managing Partner of McKinsey & Company. He co-leads McKinsey's Organization Practice in Asia, developing the talent and leadership that organizations need to thrive. He leads work across China on infrastructure, sustainability, and public-sector issues and works extensively with cities and major developers to plan and deliver integrated, sustainable urban developments.

Rewritten by: Jiang Xiaomei, Edited by: Du Zhixin, Wei Yiyi

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


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