2023.07.18 Views:
On July 14, 2023, the "Safeguard Retirement Fund, Enjoy Peaceful Senior Years" themed financial education event was held at the Shenzhen Yantian District Social Affairs Center·China Merchants Guanyi Nursing Home (hereinafter referred to as "China Merchants Guanyi Retirement Home").
The event was organized by the Shenzhen Securities Regulatory Bureau and the Yantian District Civil Affairs Bureau, with the support of the Shenzhen Securities Investor Services Center and China Merchants Guanyi Retirement Home, and jointly hosted by CoStone Capital, Minmetals Futures, and Penghua Fund.
The objective of this event was to promote financial knowledge among the elderly, enhance their awareness and prevention capabilities against illegal financial scams, effectively safeguard the legitimate rights and interests of the elderly, and earnestly protect their financial security
During the donation session, CoStone Capital and Penghua Fund jointly donated daily necessities such as dining tables, microwaves, and disinfection cabinets to the elderly at China Merchants Guanyi Retirement Home.
Minmetals Futures provided anti-fraud training for the elderly at the nursing home under the theme "Preventing Elderly Scams, Safeguarding a Happy Retirement," raising awareness about illegal securities investment fraud.
After the presentation, in celebration of the July 1st Founding Party Day, the staff performed classic songs for the elderly at the nursing home and invited retired elderly party members to join in the choir, creating a harmonious ensemble as they sang "Me and My Motherland," immersed in the uplifting melodies.
Subsequently, under the organization of the staff, the elderly participated in a puzzle game competition featuring the map of China, creating a lively atmosphere on-site.
Finally, amidst the laughter and joy of the elderly, the event concluded successfully.
Based on Peter F.Drucker's philosophy, a company is an organ of society and the community, existing for the benefit of society. CoStone Capital has always adhered to Drucker's philosophy, actively fulfilling social responsibilities, and striving for the betterment of the public interest.
The elderly are a precious asset to society and have made significant contributions to both society and families. CoStone Capital is honored to contribute to the well-being of the elderly, supporting their health and happiness in their later years.
In the future, CoStone Capital will continue to contribute to public welfare initiatives such as investor education, investor rights protection, and support for the elderly.
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