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CoStone Master Forum ⅩⅣ

2017.08.29 CoStone Capital Views:


August 28, 2017

On August 5 and 6, the fourteenth CoStone Master Forum made a hit in Lijiang, Yunnan. Nine speakers offered in-depth analyses and insights centering around "Investment Opportunities & Strategies of Emerging Industries Under New Circumstances". They were Lin Caiyi, Zhao Xianghuai, Deng Xue, Wang Li, Li Qing, Zheng Hongda, Partners of CoStone Capital Tao Tao and Chen Yanli, and Director of CoStone Capital Yang Shengjun.

Among the speakers, Zhao Xianghuai, Deputy General Manager and Chief Financial Analyst of the Essence Securities Research Center, Deng Xue, Chief Automobile Analyst of Haitong Securities, Wang Li, Chief Electronics Analyst of Soochow Securities, and Zheng Hongda, Chief IT Analyst of Haitong Securities, are recipients of the New Fortune Best Analyst.                      


Dr. Lin Caiyi on The Current Macro Economy and Asset Allocation

Lin Caiyi, Chief Economist of Guotai Junan Securities, analyzed the impact of Trump's policies on the world and the trend of China's macro economy, and gave useful suggestions on asset allocation.


Deng Xue on When There Are One Million of Tesla NEVs

Deng Xue focused on the industry of new energy vehicles (NEVs). He talked about the industry's great potential and broad investment prospects, and values the disruptive changes Tesla brought about.


Wang Li on Consumption Upgrading and Innovation of Smartphone

Wang Li said the smartphone market was nearly saturated and the price was elevated gradually. She stressed that only through technological innovation could enterprises obtain advantages in competition and that innovative key materials and segments were worthy of investment.




Lin Caiyi

Lin Caiyi is a PhD in Economics, Special Expert at the Shanghai Finance Institute, Council Member at the China Chief Economist Forum and Member of the Expert Advisory Committee at the China International Finance Forum. She has been working on economic and financial research. She once held positions of Chief Researcher and Chief Economist of Guotai Junan Securities, and Special Member of the China Finance 40 Forum.

Li Qing

Li Qing used to be Director of Shang Stock Exchange Shenzhen Office. He worked in Hong Kong as Managing Director of China Investment Information Services for a long time before May 2010. Now he is President of HuaAn Funds.

Zhao Xianghuai

Zhao Xianghuai is Deputy General Manager and Chief Financial Analyst of the Essence Securities Research Center. He once topped the non-banking financial analyst ranking of the New Fortune.

Deng Xue

Deng is Chief Automobile Analyst of Haitong Securities. He won the first in the 13th New Fortune Best Analyst Ranking in the automobile and auto component industry (2015), and had been the Best Analyst for four consecutive years.

Wang Li

Wang Li is Chief Electronics Analyst of Soochow Securities and the recipient of the New Fortune Best Analyst.

Zheng Hongda

Zheng Hongda is Chief IT Analyst of Haitong Securities and the recipient of the New Fortune Best Analyst.

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, makingHuawei 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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