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2013.12.25
By Ezra F. Vogel
Never did a person have a greater impact on China’s history, the world history and individual destiny than De Xiaoping. In order to decode modern China and individual destiny, the political career and logics of Deng Xiaoping should be on the top agenda. Ezra Vogel puts a decade of painstaking effort in Deng Xiaoping and the Transformation on China and depicts a comprehensive picture of the twists and turns in Deng Xiaoping’s life and the reform and opening up of China. Vogel offers astute and absorbing analysis on Deng Xiaoping’s personality and governing style and unique and all-rounded interpretation on China’s reform and opening up. This is a meticulously researched book on the politics and transformation of the world’s oldest civilization and a monumental work of China’s boldest strategist.
By Mao Yushi
Where Does Chinese People's Anxiety Come From? is the just published book of the prize winner of the Milton Friedman Prize for Advancing Liberty, Mao Yu Shi. In this book, Mr. Mao expounds the “snail house” in China, disentangles the root causes for the gap between the haves and have nots, and prioritize people’ interest. Sharp as he always be, he uttered three questions about the government, society and livelihood. Mr. Mao provides a wealth of cases and data to portray and analyze the mental state and lives of modern Chinese.
By Fu Peirong
Philosophy can be nonsense without life, and life can be dark without philosophy. Philosophy is not a privilege of elites, but a universal research on life and the world. It can be both intriguing and boring, which depends on the one who reads it. In Philosophy and Life, openness and curiosity are the basics of philosophy researches. Love and wisdom form the nature of mankind. The destination of the book is widening the cultural horizon of people, cultivate their independent thinking and help them take a righteous stand on certain issues.
By Kenichi Ohmae
Kenichi Ohmae offers astute insights on innovation, enterprise management, entrepreneurship and mental hurdles. He has cultivated 600 successful entrepreneurs with the methods in this book. New Business, for the first time, pieces together Kenichi Ohmae’s instructions on entrepreneurship for every reader who desires for a breakthrough in career.
Rewritten by: Luo Xinying, Edited by: Du Zhixin, Wei Yiyi
Over the past year, the bull market returned, with technology leading the way.
As I said back in October 2024, the rally that began on September 24 was not merely a rebound, but a reversal. Since then, China's capital markets have undergone a broad revaluation, moving from undervaluation toward fair value.
The Shanghai Composite Index reached its highest level in a decade. The "Yi-Zhong-Tian" trio—Eoptolink, Zhongji Innolight and TFC Communication, three prominent Chinese optical communications stocks—saw their share prices multiply severalfold in a single year. Cambricon's market capitalization briefly exceeded RMB 600 billion. Elsewhere in the technology sector, triple-digit price-to-earnings ratios and valuations exceeding RMB 10 billion became commonplace.
Some investors were greedy; others, fearful. Still others asked me: Are technology stocks in a valuation bubble?
My answer is that what we are witnessing is the hunger and anxiety of an era, reflected in the capital markets. Once you understand this, the current fervor for technology investing is no longer difficult to explain.
Investment has nothing to do with macroeconomics, but everything to do with geopolitics.
China-US relations will shape the investment landscape for decades to come. Geopolitics has played a major role in shaping the hunger and anxiety of our times, fundamentally reshaping the way we invest.
What, then, lies at the heart of China's hunger and anxiety?
The Fourth Industrial Revolution is already underway, yet China has not fully overcome the technological shortcomings left by the Third. There is no time to lose.
This is why some people wonder: Why do Chinese computing chip companies command such high valuations when their technologies still lag so far behind NVIDIA's? Why does NVIDIA trade at just 50 times earnings, while a company hailed as "China's answer to NVIDIA" commands a multiple of 300?
To me, this gets the logic exactly backward.
It is precisely because these companies cannot catch up with NVIDIA in the near term that they command a higher strategic premium. The wider the technological gap, the greater the strategic value.
The further something lies beyond our reach, the stronger our hunger. The harder it is to catch up, the deeper our anxiety. If China were to achieve a complete breakthrough in computing chips one day, valuations might actually come down.
Where can one find China's most spectacular natural landscapes?
Much of the answer, I believe, lies in and around the Hengduan Mountains: the Meili Snow Mountains, Jade Dragon Snow Mountain, Mount Gongga, Mount Siguniang, Jiuzhaigou, and many others. Vast differences in elevation and deep fault lines have given rise to landscapes of extraordinary grandeur.
Hard-tech investing follows a similar logic.
Technological gaps, discontinuities in capabilities, and missing links in industrial systems: a leap in difficulty brings a leap in valuation, and a successful breakthrough can, in turn, bring a leap in returns.
This logic extends well beyond computing chips. It is equally evident in memory semiconductors, commercial spaceflight, and other sectors where China still faces substantial technological gaps with other countries.
It was precisely this conviction that led CoStone Capital, starting in 2016, to decisively focus its investments on three areas: hard tech, emerging industries, and life sciences and healthcare. In this context, "hard tech" refers specifically to important industries in which China faces a technological gap with the United States.
Thanks to this forward-looking strategy, CoStone Capital established an early presence across the full value chains of key sectors, including semiconductors, artificial intelligence, and robotics.
Looking ahead, the frontiers of technological progress and industrial upgrading are boundless. Nor can the gaps in hard technology be closed overnight. The twin windows of opportunity presented by technological innovation and the development of homegrown alternatives to foreign technologies have only just begun to open.
The road ahead is long, but the future holds immense promise.
As an investment firm, CoStone Capital will continue to invest where the hunger and anxiety of each era run deepest, move forward with the tensions that shape our times, and extend our reach toward the most challenging—and most important—frontiers.
Spring 2026