He gave a speech on the current reform situation and investment opportunities in China, and some contents are arranged as follows. Since April and May last year, people in the financial and investment banking circles have generally seen such a phenomenon: with the increasing voice of RMB appreciation, a large number of overseas capital has entered China, looking for investment opportunities everywhere, and a large number of strategic investments have been injected into the capital market and industrial fields. And many domestic capitals, especially private capitals, are at a loss and don't know where to invest. Why are more and more international capitals optimistic about the China market? A large amount of overseas capital has entered China either explicitly or implicitly. Especially since the second half of last year, many overseas private equity funds have begun to look for investment opportunities in China. From the perspective of some specific investment projects, overseas capital organically combines investment in the industry with the income expectation of the future capital market. They see clearly the expectation of China market: what is timing, what is control, what is strategy and what is return. So what are the investment and development opportunities in China in the next few years? Today, friends from 2 1 provinces and cities in China gather here. I think, whether from the organization where you work or from your own development, you want to know where the future development opportunities are. First of all, we should be soberly aware that the elements of global technical and intellectual resources have begun to shift to China. There are many development opportunities here. Many people are not aware of this problem. The biggest feature of China's development and change in the next five or six years is the change from labor-intensive to industry-intensive and technology-intensive. It should be recognized that the profit model supported by labor-intensive advantages is already very fragile, and the price killing has pierced the flesh and touched the bones. Therefore, industrial upgrading and structural adjustment characterized by industry-intensive, technology-intensive and capital-intensive have quietly begun. There is a saying that developed countries keep their high-end technology out of China. What do you think of this statement? I think it's just a symptom, not a fundamental problem. Let's make an assumption: If you are an enterprise and you have mastered a certain core technology, China has very good profit opportunities. Can your country stop you from coming? It is largely because the conditions for technology transfer are not yet available, not because the government has stopped it. Isn't that what Japan was like at the beginning? By the late 1970s and early 1980s, many American technologies were out of date. In the next stage, some international core technical elements and human resources will inevitably flow to China, which is a very important opportunity. The biggest feature of labor-intensive industries is that workers don't need to think much, just let you do what you want. China has a huge consumer population base and expected consumer market, so the labor-intensive characteristics of China's industrial development will never appear in the United States or Europe. Like Zhejiang, many enterprises gather together, and the industrial intensive effect is obvious. What factors support "industry intensive"? First, there is a steady supply of cheap labor; Second, we are increasingly dependent on industry-the international market has become dependent on China. This development opportunity is unique to China. Even if history goes back decades, Europe and the United States will not have such conditions. Why is China so terrible now? Because the global market has become dependent on China. Core production factors, technical factors and high-end labor force will inevitably shift to China, which is also an inevitable choice for production enterprises to pursue low costs under the background of globalization, and this is a development opportunity. Therefore, China's private capital can form an alliance with some foreign capitals. Although many domestic enterprises have low technology content, their industrial chains are relatively complete and their production and operation costs are very low. They can form investment alliances with foreign capital to attract international industry giants to join. The economic departments and senior officials of China government should see that the industrial agglomeration effect in many areas of China is very serious. For example, in Yiwu market, well-known manufacturers at home and abroad set up stores in Yiwu, and the sales chain goes directly to all parts of the world. People from the same trade gather here, so the sales cost is low. We should look at this feature from the perspective of the industry. At the same time, we should realize that the advantage of low labor cost is gradually losing. Many enterprises, which take cheap labor as their advantage, reduce their prices one by one as soon as they leave the factory. If we still rely on cheap labor as a weapon, we will cut off our own path. We should also see that the biggest attraction of China market is a steady stream of mature consumers at different levels. The potential purchasing power of China is immeasurable, and mature consumers are constantly emerging in the population base of1300 million. The total consumption of China people is the biggest attraction, and the investment opportunity lies in how to meet the consumption needs of different consumers at different levels in China. This is the source of international capital. This kind of consumption demand is not only immediate consumption, but also expected consumption. I want to emphasize in particular that there are many investment opportunities in the capital market. However, a large number of domestic private capital can't feel the capital market for a while and can't grasp the depth. Since the beginning of this year, I have found that international investment banks are trying to squeeze into China's capital market and expand their investment scale. For example, the CEO of Morgan Stanley, in the past six months, was most concerned about asking the China government to issue a permit for direct access to the capital market. It is said that Morgan Stanley has recently strengthened its public relations with senior officials in China. There are many investment opportunities in the capital market now, but many of us don't understand the rules of the game and the investment rules. Many private entrepreneurs in China don't know how the capital market works. Investment projects are so difficult to choose, and they will be ruined as soon as they are invested. Private entrepreneurs have a lot of money, whether it is direct investment or indirect investment, whether it is single investment or partnership investment, how long is the expected rate of return, etc., all of which are full of knowledge and skills. China capital market lacks professional service function and good investment credit environment. Most international investment banks have a dedicated follow-up investment service team behind them, while investors in China follow their feelings and go it alone, without a good investment mechanism. There are two major investment opportunities in China's capital market: first, listed companies with long-term strategic equity participation and good asset quality at present. For example, many QFII and hot money enter the China stock market. Perhaps one day, they will stand up and have the right to speak or make decisions on the top and decision-making levels of listed companies. The second is venture capital, which will give birth to future listed companies. There are many venture capital opportunities in China, but the legal system is not perfect. At present, a problem worthy of attention and study is that in the next few years, a large number of overseas private equity funds will become increasingly active in China's capital market. The choice of private equity investment projects depends first on people, whether the entrepreneurial team is doing things, whether it is an attractive management team, and whether it can communicate and cooperate with credible international investment banks. If investors are good at assembling investment alliances, it means that a good property right structure can be formed and everyone will try their best to do things well. That's all that matters. Finally, the strategies and investment trends of some international investment institutions in China are introduced. Although there are many various investment institutions in the world, their investment strategies are different in different periods, regions and market environments. For example, there are two obvious motives for many overseas capital to invest in promising enterprises in China: one is to invest capital and manage an enterprise well, and then promote its overseas listing; Second, I look forward to listing on the China stock market in two or three years. In other words, many foreign investors are now preparing for the listing of enterprises with financing function in China stock market. It takes about two years for China stock market to have relatively strong financing ability. Then two or three years later, today's venture capital companies are almost ready to go public, and there will be a lot of premium income. Overseas capital has been looking for companies with sustained and stable profits, including state-owned and private companies. For a foreign company that wants to enter a state-owned enterprise, his first consideration is to get rid of your bad assets, while the country wants to get rid of burdens, such as banking reform. The country just wants to get rid of the long-term domestic burden in the international market, and foreign investors are not stupid. If you want to get rid of it, I will ask you what your NPL ratio should be. Well, you can ask me about the non-performing loan ratio. I can play tricks. You see, my defect rate has dropped, but the hidden defect rate is still very large, and we will continue to create defects. I'm going to throw this baggage out anyway. This is the reason why the listing time of state-owned commercial banks is too long. It is worth mentioning that some foreign-funded institutions invest in China's state-owned enterprises, mainly for the control of the market and resources. Where are the opportunities? These industries and enterprises controlled by the state will inevitably be marketized to a certain extent. If they are completely liberalized in a few years, it will be difficult to take over and the cost will be very high. So, it's better to go in now. He will have control before you let go. This is his investment strategy for state-owned enterprises. He can also pull private enterprises to fight side by side and see if you have a good team. In the next step, many foreign companies will enter major state-controlled enterprises, such as electric power and petrochemical, and the financial industry has begun to enter. Then foreign investors are also paying attention to and waiting for opportunities in the power and petrochemical industries. We must also see that the "futures market" has great investment opportunities, and of course it is also very risky. "Futures" boils down to one word: speculation. For example, speculation in futures, currency, oil, national debt, raw materials and gold, and even worse, speculation in castles in the air. Even the air can be blown up. How? The business is empty. China is now moderately liberalized, and there will be more and more speculative funds in the future. So in this case, how to cooperate with a large number of domestic private capital? If you don't cooperate well, you will be fired. If you don't get angry, you will be jealous.