Zhang Wei, Cornerstone Capital: China'S Economy Is Deep And There Will Be A Number Of Private Enterprises With A Market Value Of 100 Billion Yuan

"China's economy is deep, and if you don't make money in China, you can't make money anywhere." In December, Zhang Wei, chairman of cornerstone capital, said in a keynote speech at the annual meeting of China innovation capital.

The theme of Zhang Wei's speech is "a large number of enterprises with a market value of 100 billion will emerge in China". Starting with the stories of many Chinese entrepreneurs, Zhang Wei shared his thoughts on China's economic growth prospects, equity investment opportunities and the current situation of the entrepreneurial market.

"The volume of China's entire economy is huge, hatching a lot of new formats, and the whole Chinese economy has changed from quantitative change to qualitative change." Zhang Wei believes that whether GDP growth rate is 8% or 4%, it will not affect the pace of China's rapid economic growth. He believes in the potential of China's economy and the ability of Chinese entrepreneurs.

Zhang Wei. Information map

China's entrepreneurial story

The first Chinese entrepreneur story told by Zhang Wei comes from Li Baorong, founder of Zeyi logistics.

Established in 2008, Zeyi logistics is a professional modern logistics enterprise integrating vehicle trunk transportation, LCL truck transportation, railway transportation, rail transportation, urban distribution and cold chain transportation. In the past five years, the company has maintained a high growth rate, with a compound growth rate of nearly 50%.

In November this year, Zeyi logistics announced the completion of nearly 600 million yuan round C financing. The leading investors in this round of financing are cornerstone capital and Lanxin Asia joint venture, the former shareholder CICC capital is following the investment, and Taihe capital is the exclusive financial consultant.

There are also many entrepreneurial stories in the Chinese market from returnees. Since 2010, a large number of returnees and scientists have returned to China to start their own businesses, including Shang Tang technology, a cornerstone investment project. Among these enterprises, there are a group of companies founded by scientists, who have risen faster than the market expected.

Zhang Wei mentioned in particular the Chinese enterprises as well as Huada Zhizao, a subsidiary of BGI. As the only enterprise in the world and the only one in China that has successfully developed the full product line of gene sequencer and realized large-scale commercialization, Huada Zhizao has broken Illumina's monopoly and established its own industrial position through overseas M & A, digestion and absorption.

"Some enterprises with solid scientific and technological foundation have emerged in China, especially those with world-class, platform level and even original technologies." Zhang Wei believes that only when an enterprise has a solid technical foundation can it support its overvalued value in the capital market.

The market prospect is promising

Starting with the entrepreneurial stories of Chinese entrepreneurs, Zhang Wei analyzed the domestic equity investment opportunities and the current situation of venture market in his speech.

On the one hand, the decline of China's economic growth does not affect the vigorous development of the local market, especially in private enterprises, China will have a batch of enterprises with a market value of 100 billion. On the other hand, China's local market is large enough to give birth to the entrepreneurship of scientists represented by Shangtang, and grassroots entrepreneurship represented by Huang Feihong and Zhou Heiya duck neck.

In fact, there are more than 50 private enterprises with a market value of 100 billion yuan in the Chinese market. Cornerstone capital has invested in three of them, namely, Mindray medical, Weill and new hope.

Looking forward to the future, Zhang Wei believes that China will successfully overcome the middle-income trap, and there will be a broader market space for consumption in the future.

"The most important characteristics of East Asian culture are intelligence, diligence, deep fear of poverty, and a high degree of materialism. These are our characteristics." Zhang Wei believes that the regional culture of East Asia is a powerful tool to support countries in the region to cross the middle-income trap.

In his opinion, only a small gap needs to be opened in the door of reform. The Chinese people are born with intelligence, diligence, selflessness and pursuit of materialism, which can create a new world. The fusion of these two factors is really different from many countries.

"Innovation everywhere, deep into the bottom of society, brings national prosperity." Citing Edmund Phelps, a Nobel Laureate in economics, Zhang Wei said that the growth of private economy and the deepening of entrepreneurship and innovation will further stimulate the vitality of social innovation.

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