The 18th Term: VIP Zheshang Sharon Yin Hu hall meeting

No. 18 VIP Zheshang Salon Opening

Zhejiang Province, Cai Hua, Secretary-General of the Capital Investment Promotion wonderful scene in the salon to speak

Member Sponsor - Yinhu Center entrance

No. 18 VIP Zheshang Salon photo

On 25th, Nov, the 18th VIP Zhejiang Merchant Salon has been held in Yin Hu Chamber, taking “Tea” as the theme. And because the manager of this chamber has joined the 17th VIP Salon with great appreciation. As a result, he called our Salon committee to offer this chamber as the designated place of VIP Salon.

As a member unit’s place, the inside layout is quite neat and organized. All meeting desks have been placed as a “Way of Tea” shape, besides, this chamber owner has prepared the good tea for each participant, so as to reflect its unique “Tea” culture. At 14:00 p.m., the Salon officially begins. Except the 20 Zhejiang guests, there are three members from Shanghai. Their reason for this attendance is very simple and concise: they choose the professionalism. That means, the Salon is based on the capital operation, which attract a lot of members coming from other provinces. Meanwhile, this Salon has the largest number of women members, of which five are female.

As everyone knows, “Shan Xi Coal Re-form Issue” concocted by Zhejiang Provincial Zhejiang Merchant Capital and Investment Association has become a hot topic in current society. Therefore, in the 18th VIP Zhejiang Merchant Salon, this topic has been added in and triggered the lively discussion from all participants. The following content has been summarized, for all readers’ information.

Topic 1: With the global economy gradually recovering, do you think where is the direction of Zhejiang Merchant development and what changes will happen?

Topic 2: As a Zhejiang merchant, how you think of this change based on Shanxi Coal Mine re-form?

Topic 3: If there are some idle funds, how would you invest?

Lv Xiao Ping (Principle of Zhejiang Merchant Securities Research Institute): As a representative of a securities company, I am less involved in such activities. But this is a good capital platform, which can integrate PE, intermediaries, with the industrial entrepreneurs, and this is not easy. From my perspective, PE has been regarded as a good investment since the reform of the share system.

The core of economic development in Zhejiang is still a "doggie economy." In the industrial field the feature is still small, wide and extensive. For instance, like Mr. Zhao’s enterprise, in fact, in my eyes, he has gotten two problems. The first one is the issue of industrial restructuring, and the second issue is the capitalization of assets. For example, how to make the profits from a building. I think “additional stock issue tailed for” can make a building alive. IPO is another way. No matter buying the shell or to be IPO. GEM requirements have been placed under a 10 million.

On Zhejiang merchant development direction. At present, investment has occupied 7.3%, and the domestic demand has accounted for 3 percent, and the external exports have accounted for 3% -4%. I still think it is necessary to trigger the domestic demand. Secondly, it is the issue to adjust the whole structure. It has been proved that in the first half of 2008, there is an issue occurred. And it’s crucial how to judge the issue, and Shan Xi coal case is a typical example.

Sun Liang (General Manager of Jing Qiao Loan Company): With the global economic recovery, I would like to talk about the origins of GDP8%? Under the situation of 4 levels reduction in exports and capital idle. How to boost domestic demand is very important. The Government stimulated the domestic demand with some ways, which is like an adult giving money to children, thus they can buy something. Of course, where does the state's money come from? It’s from savings. Zhejiang merchant future development is depending on catching the correct direction of the policy, and increase the domestic demands in my view.

Zhao Wen Xiong (General Manager of Zhejiang He Ren Real Industrial Co., Ltd.): I do not agree with one point: state-owned enterprises are reliable, private enterprises are unreliable. Such as the current natural gas issue, PetroChina said it’s the problem to save the shortage. However, this self-proclaimed monopoly of state-owned enterprises, what are their early warning measures? While, on the contrary, private enterprises, just like the fish swimming in the ocean. For the future direction of development of Zhejiang merchants, I think there is a very important sentence: There is industry to be out, but only enterprises to be out of business. For example, Mr. Zhao’s industry, although it’s very tough but won’t be out. So, whatever directions could be developed.

Xu Zhe-Feng (General Manager of Blue Ocean Management Consulting Co., Ltd. Shengzhou): I would like to talk about some topics. Those real estate companies are looking for partners, and there are many other enterprises are at the still early stages, would they choose the early traditional projects? The clothing enterprises would like to acquire the overseas brands, upgrading the service. The manufacturing industry should involve with more service-oriented, and vice versa. As for the coal mine issue, it is a case occurred in the political system which is difficult to judge right and wrong. I personally prefer investing in agriculture.

Wu Zhiyuan (Director of Zhejiang King Tyle Law Firm): I am a lawyer, but also a Wenzhou local, meanwhile there are many Wenzhou businessmen around me. I would like to talk about this issue from my own perspective. Depriving from the traditional production industry, the Wenzhou businessmen started to invest in real estate, and then to energy investments. I went to Shanxi on Sep. myself, feeling that Shanxi Coal case is an entirely governmental "closing the door, beating the doggie" behavior. I have a friend in Shanxi investing 0.1 billion, in fact, a real investment in the mineral is only 30 million, and other investment amount is about 50 million. This is the complicated relationship between inside. Lately, Ryongmae case is another revenge on Shanxi coal issue. My friends around me have lost nearly more than 2 billion into bubbles. I am sorry that, as a professional lawyer I did not advise my friends to be cautious of the risks.

Deng Kai-wen (Director of Jindian Asset Management Limited Executive): I would like to suggest the market segments in Zhejiang to do more professional. Being wide is not good. Now PE can’t find the suitable projects while holding the money. But if you are engaged in the professional field, the situation is different. For example, in the agricultural field, Hangzhou has a well-known meat company. There are a number of institutional investors who want to invest in it. The key is that the company doing a professional job in meat industry. And then to the second topic, If you follow the trend to invest in energy sources, the results would be like Shan Xi coal case. I suggest that if you do not want to do the real industrial business, then be a happy investor in stock or the real estate.

Zhao Rong Lin (Chairman of Hangzhou Yu-Jin Textiles and Apparel Co., Ltd.): The reform of the program and the system are still running. In fact, since the reform and opening up in China, everyone is crossing the river while touching the stones in the riverbed. The economy has been recovered in the end or not, nobody knows. But the price in real estate is indeed higher and higher, so I think this issue is still related to the state policies. China's entrepreneurs are dominated by the central leaders. For example I have investment 50 million in Shanghai, and also encountered a "getting in first then the bus ticket" situation, which is similar to Shanxi "closing the door, beating the doggie" issue. At that time, the Government welcomed me so warmly. However, when I have put in all money, the state's policy has been changed. At present, Shanghai Government has admitted the mistake, but all money I have invested is just gone.