The main speaker ：Mr.Cheng Xiaohua
Entrepreneurial (equity) investment trends
The environment is a prerequisite for investment,the investors will be all right when he can take advantage of the trend, and will be very troublesome when he is out of trend, Mr.Cheng think it is the best time to make equity investments.
Mr. Cheng said, any country's economy is driven by the "three carriages" - exports, consumption and investment. In the past ten years, the export has slowed down ; and the consumption did not increase becase of the endowment insurance, and were coupled with housing loan, not enough spare cash; in future ten years the largest action is investment.Regarding to the future flow of funds,Mr.Cheng summarized it as a "general theory of two lakes" – as water will flow to a place, the real estate is such a "Lake", it can hold the water, but now the lake was full of water, the real estate investment could not rise 10 times in ten years any more.In the next ten years,what about the "three carriages"?The export will still slow down,the consumption will not change a lot, so the GDP still rely on new investment, in future ten years the hot money will flow to equity investment, and so the equity investment is the second Lake . In addition, the " double business startups" still support the trend of equity investment, there are more startups,there are more venture investment companies, from the perspective of the closed loop,if there lack a thing ,there lack of a capital market. If the capital market could not support the entrepreneurs,if these venture investment companies quit, these cannot form a good closed loop. This“double business startups” is likely to fail.
The capital market is not complete, the management is likely to fail. Conversely, it can be argued that the government will make this ecology becomes better, there will be an action in the capital market, which is a forced mechanism. The“double business startups”has a good point that is：When the money flow into the project，this project is innovative ，no matter technology or business mode,these money will flow to the real economy.To support such technology companies,the technology will be more developed in our country,“the double business startups”will create great technology companies in our country.
President Cheng analysed one case of the current investment project of the KingCapital,and pointed out that we can build dynamic and ecological closed-loop between projects,and this can form a good industrial chain.Now the Kingcapital has “Healthy Ecosystem”(Medical industry Chain),“Car networking ecosystem(automobile industry chain)” , “ intelligent hardware + artificial intelligence +ARVR ecosystem”,and“ Internet financial ecosystem (FinTech chain)”,every ecosystem is composed of several subprojects.
