Exclusive Interview With Snow Lake Capital CEO Ma Ming: High Quality Companies Do Not Mind The Unauthorized Harassment Of Short Selling Forces.

Although the original intention of the organization is not to be a whistle blower in the air stock market, it is not willing to talk more about the start of the "very few cases" itself, but its precise judgement and professional tactics have made its name a great shock.

After Rui Xing coffee, another stock in the stock market -- a good future to rush into the public opinion field in the way of self disclosure before publishing the annual report.

Although the nature of the two cases is still inconclusive, the impact of the two cases is not the same. What is more unquestionable is that together with the stock market of those who have recently been shorted on the bars, together with Iqiyi and others, they constitute a fatal straw in the new round of trust crisis.

When the time came back to 2011, because of many business problems such as green Nuo international and Sino Han forestry, the stock collectives were brutally hunted. Although some companies launched "self rescue" through repurchase, distributing huge dividends, increasing management, or even privatizing delisting, little effect was achieved. Many companies have been forced to cancel their IPO plan to the US. Unbearable past events are vivid.

After the release of Ruixing coffee, many VC/PE investors strongly argued that the current market situation was weak because of the factors such as Sino US trade friction and new crown epidemic. And Rui luck, and in the US stock market shook the credibility of the entire Chinese company, the risk of stocks seems to be quietly coming.

From the fuse - Rui Xing coffee financial fraud case, the media pointed to the important promoter - Snow Lake capital. Although the original intention of the organization is not to become a whistle blower in the air stock market, it is not willing to talk more about the start of the "very few cases" itself, but its precise judgement and professional approach have made it "famous".

In an interview with the economic news reporters in twenty-first Century, Ma Zhi Ming, the head of the hedge fund with a management scale of $2 billion, admits that although he reserves the right to be short, snow lake will still consider more stocks as a more precious strategy. "The strategy of snow lake fund is always more than short selling." He said.

In the view of Ma Zi Ming, there are no problems in the fundamentals of most stocks. "These high-quality companies, excellent management, as long as they are dedicated and honest, do well in the main business, without regard to the unwarranted harassment of short selling forces. We must believe that this is a fair market.

Market fairness has not been seriously hurt.

Twenty-first Century: how to judge the impact of Rui Xing coffee incident? Many people believe that this will lead to a crisis of confidence in stocks.

Ma Ziming: This is a very isolated incident. It can not represent the overall situation of the whole stock market. In this case, the audit institutions have effectively stopped this behavior, which is very gratifying for the market participants. This is a great progress. It shows that the market efficiency has improved in spite of the current market mechanism.

After the exposure, though it may be affected in the short term, it is a good thing in the long run. It protects the reputation and reputation of China's stock market in the past few years in a very timely manner. It also safeguards the market integrity (market fairness) from being hurt in real terms. In the long run, it is a good thing that China's stock market will not be dealt a fatal blow overseas.

Twenty-first Century: without considering the above cases, the Chinese stock market, which has recently been represented by who and Iqiyi, has been short again. Is this the dark moment in the stock market?

Ma Zi Ming: I have been paying close attention to the stock market since I joined the line (2004). It has been 16 years now. The darkest time was 2010-2012 years. During that time, a number of counterfeiting Chinese companies appeared in the US and Hongkong markets, and these companies had a very negative impact on the reputation of overseas listed companies.

But after 2013, the stock market has been cleaned up, and there is no big fraud. Before that time, there were New Oriental, good future, Hanting, NetEase, vip.com and other companies in the subsequent excellent performance. Over the past 35 years, there have been a number of high quality Chinese listed companies, including Alibaba, Iqiyi, Tencent music, yum China, and beelli. These companies' good performance in overseas markets has led to a significant increase in the reputation and advantages of Chinese companies abroad over the past few years.

The financial fraud happened last week is just a few other cases. It did not cause substantial harm to the fundamentals of the stock market. So I do not think it is the darkest moment.

Twenty-first Century: how do you deal with the unfriendly forces in the capital market? What advice do you have?

Ma Ming Ming: as a market participant in the 16 years of tracking stocks, I believe that quality companies and quality management can do their best by concentrating and honestly. They can completely ignore the fact that overseas agencies are not based on facts, not based on data and are not logically unwarranted harassment.

I believe this market is much more efficient than it was ten years ago. This is a fair market. Borrowing the words of high leverage capital, "friends who make time". It really can't be fake. It really doesn't work.

Global "big water", ten years of no chance

Twenty-first Century: how can we see the impact and trend of the global economy, including the fiscal and monetary policies of other countries, which will be dragged down by the epidemic?

Ma Ziming: this epidemic has a great impact on the whole world and China. We are very sad and sad. We are based on fundamentals driven long-term investors. If we look at them, though the epidemic is serious, they will eventually pass away. We focus on China's stock market. China has done very well in all aspects of epidemic prevention and control. We have confidence in China's economy for a long time.

Based on fundamental research, China's economy will be the first to recover in the global economic system. We see a number of indicators, including the aviation index, the high-speed rail transport volume index, electricity generation, coal consumption, restaurant opening rate, hotel occupancy rate, hotel housing price, school opening rate, and even the air pollution index everywhere, and so on, China's economy is returning to normal operation.

We believe that once the epidemic is over, the global economy will be "draining". China's "drainage" will not be too extensive. It will be directed to stimulate the economy, and to put money on the knife edge, we will be confident in the coming years.

Twenty-first Century: specifically, how can investment institutions seize opportunities at the micro level?

Ma Zi Ming: I think the epidemic is controllable. We are definitely on the side of optimism. The proportion of us doing more and going short is now at second place in history. The first high is in September 2015. I told my team that we started the so-called "buy and sell" mode, and each of us had a purchase list. Some good companies thought it was a little expensive, but now they have cut it down, or 33% off, some of our team members are already busy.

As a long-term investor, sometimes we are not so sure. We may buy it too early. This risk is there. We must never watch us buy it or buy it. It is possible for us to start buying and buying activities ahead of time when people are still waiting. Historically, we often make mistakes in "buying too early". We also know that we made such mistakes. If we stretch this time for three years and five years, we recognize this mistake.

From an investment perspective, especially from the perspective of China, I think this is an opportunity not to meet in ten years. In another sentence, it is heavily loaded with China. Over the long term to do more in China, this is nearly two or three weeks, and the next quarter of our work priorities.

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