Media Center

CoStone Capital Issued ¥680Mn I&E Bond in SZSE

2018.03.12 CoStone Capital Views:


On March 16, CoStone Capital ¥680Mn of I&E issued by the SZSE for the record. The bond has a five-year maturity and the money raised will be used to support the real economy, with a focus on investing in innovative start-ups. 

On March 16, CoStone Capital ¥680Mn of I&E issued by the SZSE for the record. The bond has a five-year maturity and the money raised will be used to support the real economy, with a focus on investing in innovative start-ups.                                                                      

In order to increase support for the real economy and innovative and entrepreneurial enterprises, CoStone Capital began to prepare for the issuance of I&E bonds in August 2017 after the CSRC issued the “Guidance on the Pilot Program of I&E Company Bonds”.

CoStone Capital is one of the earliest VC institutions in China. The team started in 2001 and has 17 years of investment management experience. At present, CoStone Capital has managed more than 40 investment funds such as VC, PE, private placement and M&A, with an asset management scale of more than 50 ¥billion, which ranks among the top in China.

CoStone Capital has cultivated a number of industry leaders in the fields of advanced manufacturing, TMT, healthcare, consumption and service, including Mindray Bio-Medical(300760.SZ), Royole, SenseTime, MEWE, Effort(688165.SZ), ErgengTV, etc.


Read the full article in Chinese, please check:


 Rewritten by Jiang Qinyu, 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


Stay up-to-date

Email Alerts
To receive newsletter from CoStone Capital, sign up below.