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Lighthouse Capital CEO: Long China 2.0,New Opportunities Requiring New Capabilities

Beijing, September 23, 2022 /PRNewswire/ — Super Return Asia, the world’s leading private capital conference, was held at Marina Bay Sands. Singaporeupon September 19-23, 2022The event attracted over 800 people AsiaNetwork, conduct business, and discuss the latest market trends with institutional investors, fund managers, and service providers around the world. Leo ChenFounder and CEO of Lighthouse Capital, was invited to share his views on the current investment climate and investment opportunities. ChinaBelow are some of his insights on when to invest. Chinaand the latest environment to face Chinese investment bank.


Leo Zheng, Founder and CEO of Lighthouse Capital

China Strong fundamentals and still a very attractive market

Now the logic behind Chinese economic development is changing, Chinese The economy has entered a new normal.economic and industrial structure of China underwent a major transformation. “on the one hand, Chinese Dependence on foreign trade has decreased since 2008. Especially in 2020, China Adopting a development pattern of ‘double circulation’ in which the domestic market and the foreign market push each other, the economy has changed from export-oriented to a combination of domestic and foreign demand,” Leo said. Chinese GDP shows an upward trend thanks to technology-intensive industries. Chinese The industrial structure continues to advance in the direction of high added value. “

The transformation of economic and industrial structures Chinaand according to Leo there is reason to believe that China ready to put them to good use.

first, China There are many upgraded production factors that will be the growth engine of Chinese Economy: high-quality talent pool, diversified and internationalized funding methods, rapid development of core technologies.

As Leo mentioned, a quality talent pool that includes well-educated engineers opens up new development and investment opportunities. Chinese Demographic bonuses are shifting from low-cost to high-quality labor, and a rich talent pool of well-educated engineers will continue to drive workforce upgrades. Chinese industrial structure.

Regarding the diversification and internationalization of financing methods, Chinese Capital markets include the establishment of the Science and Technology Innovation Commission and the Beijing Stock Exchange, as well as new listing reforms on the Hong Kong Stock Exchange. Besides, venture capital development is continuously supported, providing effective funding channels and exit methods for Chinese start-ups.

Research and development of core technology has always attracted great attention ChinaAccording to the World Intellectual Property Organization, Chinese International patent applications will reach 69,500 in 2021, ranking first in the world for the third consecutive year.

Second, from an industrial development perspective, Leo emphasized that: China It is one of the few countries with both a huge market and a complete supply chain ecosystem. He mentioned some valuable stats.”China The population is 1.4 billion, the middle-income class exceeds 400 million, and the GDP per capita is 10,000 USDSuch huge market volume has resulted in a diverse and thriving business ecosystem.

In addition, he also has multiple providers along the supply chain, good cooperation ability, and complete infrastructure and logistics system, Chinese Overall supply efficiency is one of the world’s leading players.

Third, the Chinese government has made continuous efforts to promote long-term sustainable development. Leo gave some examples of favorable policies.

“In the internet industry, despite the short-term negative impact of antitrust and data security policies on Chinese concept stocks, the underlying goal of the regulator is to effectively regulate the market and standardize the industry. and to break monopolies and create an environment.Promoting innovation is also a policy direction that has developed the following markets. Europe and promoted by the United States.it is important to mention China has always been very supportive of privately owned companies. “

From the above analysis, it can be seen that Leo, thanks to improved factors of production, favorable environment for industrial development, and supportive policies, China is shifting from quantity-driven to quality-driven development, and future growth is expected.

The changing capacity structure of investors and financial advisors

From Leo’s point of view China It has always been a worthwhile market to invest in, China We are entering a new era of investment. In this new era, investors must evolve to have deep industry ties and a better understanding of how technology drives the industry.

He predicted that investment opportunities in technology and industrial integration will come faster and faster. He mentioned a project to transform the Ordos mining region with robotics. Currently, the application of robots to the local production for local consumption industry in remote areas is attracting attention. The true drivers of the primary market are the technologies that can accelerate and deepen industrial transformation.

Leo also pointed out that the basis of evaluation is also changing. Until now, investments could only focus on single variables such as user growth and technological innovation, but industry investments need to introduce more factors that affect company development. “It’s not just how good the technology itself is, it’s also important whether the technology has a future as an industry.”

He also reminded investors that the entry threshold for industrial businesses is higher than that of the Internet. Companies are increasingly demanding the industry resources of their shareholders.

On the theme above, Leo highlighted two requirements for investors in the long term. For one thing, with many industrial projects hidden behind a curtain, they need to identify opportunities and grab projects early through in-depth research. Another reason is that they need to be patient to form links in the industrial chain and better help enterprises find a balance between industrialization and business growth. China We will lean toward active investors who are well-established in the industry and who are key to successful industry investment. “

The Lighthouse Growth Fund, managed by Leo and his partners, is an aggressive fund that aims to take root in the industry. With the diverse functional systems and resources of Lighthouse Capital’s market-leading financial advisory business, the fund takes full advantage of the high-quality deal flow of financial advisors and, through in-depth research and service, establishes long-term partnerships with all partners. realize real value.

With a global perspective, Lighthouse Capital is truly a leading boutique investment bank. China should be like

“With investment banking as our core business, we can continue to help companies raise capital.We have also established value-added services to help entrepreneurs recruit talent. Established an industry development advisory team to assist the M&A team to help companies have more diversified capital market options.To date, more than 200 companies have US$32 billion. have a leading position in China You can spot good opportunities early and seize good assets. And the ecosystem that Lighthouse has built can give companies a lot of power after their investment,” Leo concluded.

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