Yida Capital Ying Wenlu: Investment has no eternal city, to find the light of the future in chaos

On May 13, at the "15th China Investment Annual Conference and Annual Summit", Ying Wenlu, chairman of Yida Capital, delivered a speech with the theme of "Investing without an Eternal City, Looking for the Light of the Future in Chaos", summarizing the four macro variables affecting investment at present and his three expectations for future development.

Ying Wenlu believes that there is no eternal city for investment, and many unpredictable accidents are actually the norm of history. These small-probability events will suddenly lead to the reshaping of the pattern and the redistribution of resources. Affected by the new crown epidemic, the relationship between the world's major powers is changing, the division of labor in the global industrial chain is being adjusted, and the global competition for resources is intensifying. Reflecting on the dark areas of cognition, turning crises into opportunities, and seizing development opportunities in black swan and gray rhino events are compulsory courses for investment institutions.

Ying Wenlu summarized the four macro variables that affect investment at present. First, the epidemic is far from entering the "post" era, and the long-term world quarantine will promote continuous changes in production and lifestyle. The horizontal division of labor on a global scale will move towards regionalization and verticalization, and the integration of online and offline will become the new normal.

Second, under the accelerated catalysis of the epidemic, the revitalization of the real economy has become an urgent need of all countries. The improvement of China's own industrial system and the supporting of the industrial chain have been done well, and more and more talents and industries are returning and transferring to China. The market has made reasonable choices in resource allocation.

Third, imported inflation and tight liquidity balances pose a double pressure, and the space for investment is compressed. Imported inflation has led to rising raw material costs and declining corporate profit margins, which has also put forward higher requirements for enterprise operations and cash flow management.

Fourth, the comprehensive implementation of the registration system is not only the direction of marketization, but also the international common rule, and it is a visible future that has been written into relevant central documents more times.

At present, China's industry is in a critical period of transformation and upgrading, and Ying Wenlu put forward several expectations for future development. First of all, China has a broad market, a complete industrial system, an increasingly good business environment, and a large number of entrepreneurs with entrepreneurial spirit, the domestic semiconductor, new materials, biomedical and other industrial systems will be comprehensively upgraded, the neck of the link will eventually be overcome, weak shortcomings will also be improved through the way of chain repair, strong chain.

Second, China should build an industrial system with global discourse power. Not only do we need industrial giants, but we also need to cultivate a group of singles champions with scientific and technological content and room for growth. Ying Wenlu suggested that venture capital institutions should have a sense of mission, truly invest in the country's shortcomings in the industrial system, and achieve import substitution.

In addition, today's entrepreneurial model has rapidly shifted from the past model category to the track of technological innovation and hard scientific and technological innovation, and entrepreneurs have changed from young "wind-chasing teenagers" to "scientific and technological elites" with profound industrial accumulation.

"In investment practice, we find that this group of entrepreneurs engaged in the technology industry have very different styles. Technology entrepreneurs need deeper industrial accumulation, most of these people in the first ten years in the process of exploration, learning, accumulation, many founders in the thirty-four or five or even fifty or sixty years old to start a business. Ying Wenlu said.

At present, China's industry is in a critical period of transformation and upgrading. Society's respect for science and technology, talents, and entrepreneurs has further stimulated the enthusiasm for scientific and technological innovation and entrepreneurship, and capital has accelerated the gathering of scientific and technological innovation. Although GDP growth has entered the new normal at a medium and low speed track, and everyone has some concerns about the recent fluctuations in the capital market, I believe that China's capital market under the condition of physical fitness is more worth looking forward to, and China's rise cannot be ignored.

"The era of the New Order is coming, but most people may be aware of it. In a state of chaos, all we need to do is open the skylight to better see the direction. Ying Wenlu said.

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