The 13th Term: VIP Zheshang Sharon held three Villas

Just before the 13th VIP Zhejiang Merchant Salon gets started, a sudden gust of cold wind has turned the sunny Hangzhou into a drizzled one. But maybe it’s the members’ warmth expelling the black clouds hovered around the top of Hangzhou for continuous 3 days. On 23rd, Sep, the Sun shows her general charming smile again. At 1: 30 P.M., around 30 VIP members have gathered in consort two or three together and met in San Tai Villa where is full of The Yangtze Villages’ appearance features. It’s the classic, elegant and quiet Dan Gui Attic where the 13th VIP Zhejiang Merchant Salon has been started formally.

In three Villas held 13 VIP Zheshang Salon on-site

Because of the former successful Salons, VIP Zhejiang Merchant Salon has gained a certain degree on reputation. And the meticulous members have found that, VIP Zhejiang Merchant Salon hosts have added the Counsellors Office of People’s governmental of Zhejiang Province and Zhejiang Online.com. Mr. Cai Hua, General Secretary of Zhejiang Merchant Capital Investment Promotion Committee has explained this minor change with all participants as soon as Salon gets started.

He said, the Counsellors Office of People’s governmental of Zhejiang Province is a direct official unit which can report to the highest level leaders of the provincial government. The reason why they could be one of the hosts of this Salon is that our members’ viewpoints can represent a part of Zhejiang merchants. They also hope they could hear more voices from Zhejiang merchants. With the special thanks to Zhejinag Online, which takes the realtime video as a main host with a great appreciation to Salon.

This salon has been divided into three parts: “self-introduction”, “topics discussion” and “Projects Promotion”. Due to the reason of realtime video recording, all members behave slightly cautiously during the “self-introduction” part. Therefore, Mr. Cai Hua, as the emcee, has presented his own viewpoints on capitals, triggering timely applause from all members. Then the meeting air has been turned out to be more active. From the first beginning cautious speech to the final debate. This Salon can be described as a battle royal.

Zhejiang Online cameraman filming the whole process of Sharon

Topic one

As a Zhejiang Merchant, how do you feel the changes over the last two years in business?

Han Yao Wen (Administrative Deputy General Manager of Tong Xiang World Center) : I would like to present my own ideas on the mass favorite topic: the real estate price. Although currently, the governments are trying to control the price, but it has been still running up. There are two reasons, the first one is the rigid demands; the second one is the governmental land market. To some extents, the government must quit the land market if the price is supposed to be controlled. While my own understanding for this issue is, the policies from the central government and the local government are in conflicting. Such as the central government is claiming to control the price, while the local land auction is more and more. The land won by the Green Town is more than 20,000 yuan per squre, meaning the market demand is still on.

Cai Hua (Secretary –General of Zhejiang Merchant Capital Investment and Promotion Association): What Mr. Han talked is pretty significant. The landmark on price keeping updated means the currency devaluation, and the actual economy is bad. Based on the real estate, the real entities of the investment have lost the confidence. It seems there’s no way out for the actual enterprises and business.

Li Wei Hong (Deputy General Manager of Guangsha Holding Venture Capital Co., Ltd): I would love to talk about the construction environment. The potential rule seems a bit improved than before. In the old time, the demand on construction workers is huge, and most of their education level is pretty low. While, nowadays, the construction industry is highly complicated, with the strong dynamic nature; construction is related to the real estate. In my eyes, Hangzhou real estate situation is quite abnormal. One decade ago, the beneficial residence housing plan has been cancelled. But just take a look at the price change since 1999, how many empty houses have been left? While in the western society, the price has not been changed a lot in the past ten years. That’s why I couldn’t obtain an optimistic attitude on the future five years’ real estate market.

Mao Wei Nong (General Manager of Tian Nong Investment Management Co., Ltd): In 2002, the apartments for the old have not been focused. Not only the human care is insufficient, but also the living standards. But these years, our state starts to emphasize the retired issue. The government has put forward the topic of the old, claiming that the old needs more care. That’s why lately, the apartment for the old has been into the sales. Of course, I have not been engaged in the old people’s home, I am more interested in a healthy life style.

Jin Li Zhen (Capital Department of Hui Chang International Investment Co., Ltd Hangzhou Branch) : I think only the professional viewpoints can reflect the real situation. The scarcity on capital in the middle-small enterprises is a realistic problem, after all, there are only a few companies which don’t need any funds. The process of privatization of the state-property has been accelerated. In the capital market, the chain of big fish eating small fish will be formed sooner or later. Such as in the next half year, more than 150 state-owned investment companies will be squeezed into 80 around, and I estimate that, the speed will be at 15%-20% per year.

Zhu Liang (President of Kai Feng education) : I set up my own company after finishing the study in USA. We have some big customers too, such as the Green Town and De Yi Real Estate. I feel the biggest change in these years is the core competition. Such as, I can often hear some parents complaining: a storage battery has been changed dramatically because of the governmental policy shift. Moreover, I disagree the “state lagging behind while the people on progress”, on education industry, actually, it shall be “the people lagging behind while the state on progress”.

Yao Zhu Yi (Chairman of Hangzhou Tie Ying Crystal Craft Co., Ltd) : I have worked in the agents before, now, I have shifted into the real business, discovering the number of the real enterprises getting smaller. Actually, the real enterprises can survive, but the innovative products are getting less, and the new labor law released has also affected the present enterprises.

Lin Fen (General Manager of Zhejiang San Men Yuan Tai Sponge Co.,Ltd): In fact, these years’ financing is not an issue for us, but because the environment-friendly requirements are getting higher, such as, we(light chemical industries) are not allowed to enter a lot of places. Next, the new labor law is also a mutual guarantee.

Ping Hong Jiang (Chairman and General Manager of Shi Xiao Advertisement Investment Media Group): Firstly, I think this topic is good. From my experience in media, real estate, finance and China Mobile/Telecom, I would love to talk about my own viewpoints. Where is the pressure? It’s from the products mobility. Two years ago, there is 1 Mao profit from each paper I have printed, while now, it’s only 1 Li. This is the competition. That’s why the enterprises need innovation. Next, I have a small suggestion, it would be greatly helpful for the development if the enterprises could afford an advisor who could study the state policies and do some research on the products.

Group photo of all participants

Topic 2 Do you think which lesson is the most necessary for all Zhejiang merchants?

Yao Zhu Yi (Chairman of Hangzhou Tie Ying Crystal Craft Co., Ltd) : Management, find the suitable management solution with the innovative thoughts.

Lin Fen (General Manager of Zhejiang San Men Yuan Tai Sponge Co.,Ltd): Healthcare and longevity.

Mao Wei Nong (General Manager of Tian Nong Investment Management Co., Ltd): Core technique, investment innovation, conception molds.

Jin Li Zhen (Capital Department of Hui Chang International Investment Co., Ltd Hangzhou Branch) : Capital operation, it’s really a good solution to be IPO.

Liu Yu (General Manager of Hangzhou Liu Yu Advertisement Co., Ltd) : the ability of capital operation, the channels of development are on scarcity.

Han Yao Wen (Administrative Deputy General Manager of Tong Xiang World Center) : the well-developed management system.

Though some viewpoints in Salon are just opposite, but from the matter of the fact, “small difference, similar over-all” has been exists. At least, in the final good-bye moment, around 30 participants have shown their highly appreciation and approval on this VIP Zhejiang Merchant Salon. That’s why we also feel so relieved and satisfied. And also our tenet on this activity has been confirmed again: matchmaking all capital and projects, making all members become friends.