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How CoStone Portfolio Companies are Helping China during the Pandemic

2020.01.28 CoStone Capital Views:


PharmPlus is sending 2mn RMB emergency supplies (masks, protective suits, goggles, and disinfectants, etc.) to first responders and frontline health workers in Tongji Hospital, Wuhan, and in Anhui province (supplies will be distributed by Anhui’s Red Cross Society).

Mindray Medical has donated batches of venerators, monitors, infusion pumps, anesthesia machines, defibrillators, portable ultrasonics, and testing equipment to the frontline hospitals in Wuhan. Over 200 engineers are stationed in Wuhan for equipment maintenance. All Mindray branches’ emergency teams are on the call 24 hours a day to ensure the operation of medical equipment nationwide.

CF PharmaTech is canning medicines needed by the Chinese Military Academy of Science for the fight against the COVID-19.

Wuhan Bright Eye Hospital deployed vehicles and drivers for the transfer of COVID-19 patients. Many of its workers have volunteered to support frontline hospitals on site. provides an online platform where 300,000 registered doctors are helping the public with professional advice on the prevention of COVID-19 pneumonia for free. 

Bestlink is engaged in the construction of Huoshenshan Hospital’s 5G network and a city-wide coverage of the wireless 3G/4G/5G network so that telemedicine can work.

Huitian Adhesive donated 1mn RMB to Wuhan and Xiangyang city.

Transwrap donated 50,000 sterile rubber gloves and 800 bottles of disinfectant gel to Wuhan.

The list can go on and on.

We are and will continue to protect all Chinese medical workers in the fierce fight against the virus.

Finally, there will be an even healthier China.

Rewritten by Chen Cong, Edited by Du Zhixin,Li Yunzhen

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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