Bao Fan: I think the venture capital industry is the key link of economic transformation, because venture capital must be looking for the most creative and valuable fields. In the past, the scale-driven or capital-driven model no longer works. The focus of venture capital industry is the science and technology field with independent innovation and core technology competitiveness. The investment in science and technology industry itself has the characteristics of long cycle, high risk and large investment amount. At present, the secondary market does not have the ability to provide financing for these enterprises, and this demand can and can only be solved through the primary market. At this time, the venture capital industry should assume this responsibility and play its role.
Securities Times reporter: Recently, regulatory policies frequently release positive signals, support the development of new economy and private economy, and emphasize financial services to the real economy. Is it also a good development opportunity for Huaxing Capital Group? In what ways?
Bao Fan: China has indeed entered an innovative deep water area. Most of the previous innovations were mode innovations, and now they have entered the stage of technological innovation. However, the innovation of core technologies, such as chip design, biomedicine and so on. It may take more than ten years to truly have the ability of commercial export, which has brought considerable pressure to PE, VC and other funds in the venture capital industry. I think the launch of science and technology innovation board is a good opportunity, which actually builds a bridge between the primary market and the secondary market of venture capital. As one of the exit channels, the essence of science and technology innovation board is to open a door for enterprises that still have certain risks but are full of prospects, and resolve risks through the open market. It is very important to have such a baton, which can better encourage the upstream venture capital industry and actively support scientific and technological innovation companies, and also bring good investment opportunities for capable secondary market investors.
Securities Times reporter: Do you think that new economic enterprises that do not have strong technological innovation capabilities will also cause waste of resources?
Bao Fan: The market is just a big wave. We should learn to respect market rules. The success rate of entrepreneurship itself is less than 1%, but we allow failed cases, and we cannot deny the industry because of the failure of individual cases, which is very dangerous.
It is a great thing that China government supports the development of venture capital industry. Throughout the world, such support is rare. The next question to consider is how to support it, whether to solve the problems faced by the industry through subsidies or through more market-oriented mechanisms. What I have always advocated is to respect the market and solve it through market-oriented methods.
As long as the macro direction is right, there is no need for too much administrative intervention, especially in communication with the private economy. You will find that everyone grew up in the market rules. If we want to solve their problems, we should use market-oriented means instead of simple administrative means.
The core is that in the process of policy formulation, especially in the process of implementation, we should respect the laws of the market, have a correct expectation, and be patient enough.
I think that solving the problems in the current economic structure through market-oriented means is equivalent to Chinese medicine to a great extent. In fact, it is conditioning and needs to be gradually infiltrated. The market is an organism, and its growth regulation ability is very strong. Inappropriate administrative intervention is equivalent to prescribing a fierce drug, expecting an immediate result, but sometimes it backfires.
Securities Times reporter: Have you ever thought about the future of Huaxing?
Bao Fan: I think there are still many things that can be done. At present, the three business lines of Huaxing Capital Group-investment banking, investment management and Huajing Securities-have great room for development and may be involved in the field of wealth management in the future. But on the whole, we still hope to make Huaxing a platform for people with lofty ideals in the financial industry.
We are entrepreneurs ourselves. Since we started our business in such a high-threshold field as finance 13, the platform has begun to take shape, and we are very willing to share it with more financial entrepreneurs. Huaxing has taken the first step. In the future, we also need to make the platform more open, attract more talents and push Huaxing to a higher level.
Our generation of financial entrepreneurs are very lucky to be at the intersection of two major industry cycles. One is the rise of China's new economy. From nothing 20 years ago to today, the proportion of new economy in GDP in 20 17 years is close to 1/3, and this figure will continue to rise. The other is the huge development space brought about by the changes in the financial environment. At present, there is still a gap between domestic and foreign financial services in securities, asset management and wealth management. Our capital market is huge, but it lacks in maturity, complexity and professionalism.
Huaxing Capital Group has always been positioned as a financial institution that serves new economic enterprises and provides needed capital support for new economic enterprises during their growth and maturity. At the same time, the new economy has created a lot of wealth and needs professional management. I believe that in the next 20 years, Huaxing will be able to add fists and feet, and what we can do will be more exciting.
(Article source: Securities Times)