2016.07.30 CoStone Capital Views:
On June 18, the tenth CoStone Master Forum commenced with the theme of "Behavioral Finance in Investment" in Huangshan, Anhui. Professor Zhu Ning at the Shanghai Advanced Institute of Finance (SAIF) offered wonderful lectures. Kong Xiaohong, Mayor of Huangshan Municipal People's Government, Zhang Wei, Chairman of CoStone Capital, and Qian Li, General Manager of Anhui Credit Guarantee Group and Secretary of the Municipal Party Committee, delivered speeches before the lectures.
On June 18, the tenth CoStone Master Forum commenced with the theme of "Behavioral Finance in Investment" in Huangshan, Anhui. Professor Zhu Ning at the Shanghai Advanced Institute of Finance (SAIF) offered wonderful lectures. Kong Xiaohong, Mayor of Huangshan Municipal People's Government, Zhang Wei, Chairman of CoStone Capital, and Qian Li, General Manager of Anhui Credit Guarantee Group and Secretary of the Municipal Party Committee, delivered speeches before the lectures.
Kong Xiaohong making a speech
Kong Xiaohong praised what CoStone Capital had achieved and wished "more enterprises to know about Huangshan, and set branches, invest and start businesses in Huangshan".
Zhang Wei making a speech
Zhang Wei made a brief introduction of the theme of "Behavioral Finance in Investment". He said, "Behavioral Finance is quite an interesting subject that focuses on humans' psychological activities when making risk decisions. Many human behaviors are actually irrational in terms of decision-making in financial, political and family life. So Behavioral Finance is interdisciplinary, which covers the contents of Psychology, Finance and Sociology."
Qian Li making a speech
Qian Li said that a massive social transformation was emerging in the post-crisis era, and innovation, as its dominant driving force, would cause disruptive changes. He also pointed out that Google, Facebook, IBM, Baidu, Alibaba and Tencent were the major innovators in the world.
Speaker
Prof. Zhu Ning
Zhu Ning received a bachelor's degree in International Finance from Peking University in 1997, a master's degree in Management from Cornell University in 1999, and a PhD in Finance from the Yale School of Management (SOM) in 2003. He used to be Professor of Finance with Tenure at the University of California. Now he is Deputy Dean and Professor of Finance at SAIF and a researcher at the International Center for Finance, Yale SOM. He also serves as Special Term Visiting Professor of Finance at the Guanghua School of Management, Peking University, and Adjunct Professor at the University of California.
Rewritten by Jiang Xiaomei, Edited by Li Yunzhen, Du Zhixin
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
