Chen Yonglan, President Of China'S President Of The Euro River Fund, France: Almost Every European Company Has A "China Dream".

"As long as the ability of consumption to stimulate domestic demand exists, China's economic development will have a fundamental guarantee." Chen Yonglan, managing director and President of the Asia Pacific region, France, said in December 17th an interview with the economic report reporters in twenty-first Century.

Eurazeo, a French veteran Private Equity Investment Firm with a 140 year history, is listed on the Euronext Euronext (Code: RF). At the moment, eisueze manages 17 billion 700 million euros of funds, mainly transnational and cross industry mergers and acquisitions, and takes medium and long-term investment targets as the main investment strategy.

In 2012, the French raiser fund group had made an evaluation report and decided to go to Asia first to China. In 2013, the Shanghai office was officially established.

Before joining Chen Yonglan, he served as deputy director of the Swedish government investment promotion agency and chief representative of China, international director of the International Economic Development Commission of the United States and an official of the United Nations Development Programme. He has more than 20 years of global vision and experience.

In March 2019, China Investment Corp (CIC), France's Eurazeo and BNP Paribas announced the launch of the Sino French Industrial Cooperation Fund with a scale of 1 billion euros, focusing on helping French and European enterprises to develop the Chinese market. The fund is run by ureze as a fund manager. The Sino French bilateral fund was officially launched in November 6th under the testimony of the heads of state of China and France.

Chen Yonglan said that at present, the fund is mainly concerned with medical health, environmental protection, advanced manufacturing and Internet technology, business services in the upgrading of consumption, financial technology and other fields.

Chen Yonglan. Data map

How to open the Chinese market for luxury Moncler?

In 2013, ureze set up Asia Pacific headquarters in Shanghai, becoming the first French private equity fund in China, and is the first overseas office outside of Europe. After six years in China, how does he see China's economic prospects?

Chen Yonglan said that China's economic development has indeed entered a new stage and is facing challenges from outside and inside. Today China needs to find a new mode of transformation and upgrading, and to solve the problems left behind in the rough development. For instance, if there is no good financial structure and financing structure for local debts and real estate problems, there will be huge challenges for those industries that need transformation and upgrading without sufficient funds to support them.

But development is still the main line. "I think the problem will be solved as long as the momentum of development is maintained. It is challenging to gradually resolve and rebalance in the process. " Chen Yonglan said.

The most important strategy of the Chinese team is to help European enterprises enter the Chinese market. Nearly 80% of the enterprises invested by ureze are European enterprises, a small part of them are in the Americas. A large number of enterprises have a large market prospect in China, but they have not yet entered the Chinese market. As a major shareholder, he will help them to land in China quickly. Over the past six years, the company has promoted nearly 30 European companies to successfully open the Chinese market.

"Every year when we look at about hundreds of European mature enterprises and get information from these enterprises, I find that nearly 80% of enterprises will mention China's strategy or have Chinese goals. This is a common phenomenon. Every European excellent medium scale enterprise has the idea of doing business in China, but some of them have been left behind in planning. There is no doubt that they all have Chinese dreams. Chen Yonglan said.

The second core business is to match the invested enterprises for acquisitions and mergers. Chinese enterprises are likely to encounter bottlenecks in product quality when they become bigger. If they match the technology and products of European enterprises with those that understand the operation of Chinese market, explosive growth can be achieved.

In the past few years, the successful case of the uiser fund is a luxury Monestier de Clermont brand known to Chinese consumers, called Moncler. It was originally a French brand, and it became one of its major shareholders in 2011.

The success of Moncler in China has been helped by the comprehensive promotion of ureze as a major shareholder. Chinese consumers have made great contributions to its growth. It can be said that Moncler's success is inseparable from Chinese consumers.

"Moncler has just begun to do very little in the Chinese market. We helped them establish a Chinese team, determined the strategy of doing direct business in China, set up 23 stores in the best area in the first tier cities in three years, increased publicity, and increased the share of the Chinese market from nearly 0 to 20% by operation. When we took over, it was relatively small, and it was a ten billion dollar company when it left. " Chen Yonglan said.

"In the past, Chinese entrepreneurs paid a lot of tuition fees for overseas mergers and acquisitions".

From the global M & a market, the US subprime mortgage crisis triggered the global economic crisis from 2007 to 2008. After the crisis, cross-border M & a basically showed a steady growth trend.

Chen Yonglan said: "as a whole, cross border mergers and acquisitions have great risks. China has invested many foreign enterprises in the past ten years, but there are many failures. The reason behind this is that they ignore the factors of corporate culture. Over the past ten years, ten years have witnessed the explosive growth of Chinese tourists overseas. Before 2017, many Chinese entrepreneurs went out to buy businesses just as Chinese tourists went out to buy bags. But the final success rate is not high. In general, Chinese enterprises lack the ability to manage post investment in overseas mergers and acquisitions enterprises, which is one of the important reasons for the low success rate.

Chen Yonglan believes that Chinese enterprises are still at the stage of paying tuition fees. Cross-border mergers and acquisitions are acquired by mature enterprises, which require excellent professional ability, systematic thinking mode and strong post investment management. "When we invest in high quality targets, we will invite domestic investment institutions and strategic investors to invest together," he said. After the completion of the acquisition, we will integrate high-quality resources and jointly develop the Chinese enterprises to achieve a win-win situation.