2011.03.31 CoStone Capital Views:
March 30, 2011
With the theme of "Growth & Reward", CoStone Annual Meeting 2010 & Guangzhou CoStone Investor Conference took place at Sanya Marriott Yalong Bay Resort & Spa., Hainan from March 25 to 27, 2011. Nearly 100 chairmen and senior executives of listed and to-be-listed companies and 200 guests from industry, academia and the sector of financial investment attended the meeting.
Zhang Wei, Managing Partner and Chairman of CoStone Capital, acted as the moderator. In the meeting, Managing Directors Chen Yanli and Wang Qiwen reported on the operation and management of the History Fund and the Guangzhou CoStone Fund respectively, and Managing Director Tao Tao introduced the newly launched funds. The partners expressed their views of the economy and the private equity sector in China. They made detailed analyses of CoStone Capital's investment philosophy, strategies and style, and compared the returns on investment of various investment cases in different sectors. In the Investor Conference, Chairman Zhang Wei made an objective summary of the gain and loss of CoStone Capital in the past year.
Moreover, wonderful keynote speeches were given by Professor Yang Du at the Renmin Business School, Dr. Shi Wei at the Finance and Securities Institute, Renmin University of China (RUC), Professor Wu Chunbo at the School of Public Administration and Policy, RUC, Professor Yu Jianrong at the Rural Development Institute, Chinese Academy of Social Sciences (CASS), Professor Peng Jianfeng, Chairman of China Stone Management Consulting Group, and Professor Zhang Weiying at Peking University.
Prof. Peng Jianfeng
Peng Jian Feng is Professor and PhD Supervisor at Renmin University of China, Chairman of China Stone Management Consulting Group, Deputy Director of China Enterprise Confederation Management Consulting Committee, Vice President of Beijing Enterprise Directors Association, and a famous management consulting expert in China. He used to be Vice President of the School of Labor and Human Resources of RUC. Having been working on the consulting and research work of HR management and corporate culture for a long time, he provides consulting services for various enterprises. He has been hired as Senior Management Consultant and the team leader by Huawei and TCL successively. The team led by him has served dozens of famous enterprises, with the results of Huawei Basic Law, OCT Charter, TCL: Defeat Scale with Speed, Samsung (China) Culture and Dongfeng Nissan Programme of Action.
Prof. Wu Chunbo
Wu Chunbo is a leading expert of China Stone Management Consulting Group, Director of Institute of Organization and Human Resources, RUC, and a PhD supervisor. With over 100 authored articles in famous journals at home and abroad, he has published or translated more than 10 books, such as Grasp the Future-The Planning of Modern Business Operation, Design and Operation of Organizations, Cases of Human Resources Management, and Get out of Chaos. He provided services of HR management system designing and consulting for dozens of Chinese enterprises. As one of the drafters of Huawei Basic Law, He has served concurrently as Senior Management Consultant at Huawei since 1995.
Dr. Yang Du
Yang Du is Professor and PhD Supervisor at the Renmin Business School. He received a PhD in Economics from RUC and a PhD in Business Administration from Kobe University, and he did his post-doc at RUC. His research focuses on the theory of the growth of the firm, knowledge management, corporate culture and business ethics.
Shi Wei is a researcher and Chief Consultant of the Finance and Securities Institute of RUC. He has been engaged in enterprise management consulting since 1995, specializing in marketing and enterprise strategy. He provides management trainings for enterprises in China, including TCL, Midea Group, Giti Tire, Motorola, Liuhe Group, Robust Group, CIMC, Telling Telecom and SPD Bank, which have been well received.
Prof. Zhang Weiying
Zhang Weiying graduated with a bachelor's degree in 1982, and a master's degree in 1984, from Northwest University (China). He received his M. Phil. in Economics in 1992 and D. Phil. in Economics from Oxford University. His D. Phil. supervisors were James Mirrlees (1996 Nobel Laureate) and Donald Hay. Between 1984 and 1990, he was a research fellow of the Economic System Reform Institute of China under the State Commission of Restructuring Economic System. During this period, he was heavily involved in economic reform policy-making in China. He was the first Chinese economist who proposed the "dual-track price system reform" (in 1984). He was also known for his contributions to macro-control policy debating, ownership reform debating, and entrepreneurship studies. After he graduated from Oxford, he co-founded China Center for Economic Research (CCER), Peking University in 1994, and worked with the Center first as an associate professor and then as a professor until August, 1997. He then moved to Peking University's Guanghua School of Management in September, 1997. He is the Sinar Mas Chair Professor of Economics at Peking University's National School of Development.
Prof. Yu Jianrong
Prof. Yu was born in Hengyang, Hunan in 1962. He graduated from the Institute for China Rural Studies, Central China Normal University with a PhD in Law in 2001. Now he is Professor and Director at the Social Issue Research Center, Rural Development Institute, CASS. His representative works including Yuecun Politics: The Changes of China's Rural Political Structure During the Transition Period, The Condition of the Working Class in China, and Contentious Politics: Fundamental Issues in Chinese Political Sociology.
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