The 12th Term: Salon of Discussion on Capital issue held on Blue Sky and Clear Water Bay

It is a coincidence that, the location of the 12th VIP Zhejiang Merchant Salon is Hangzhou International Hotel of Blue Sky and Clear Water Bay, while Fan Jing Hua, General Manager of this hotel is exactly the participant member of the 11th VIP Salon. Therefore, she gives us a call when she has been informed that we are in the process of selecting a best location for the 12th Salon.

On the afternoon of 26th, August, we have arrived at Tao Yuan Fang of the international hotel located on Lian Hua Feng Road, where is the very spot for our 12th Salon. More than 20 can chairs have been neatly put in the chamber with the fresh and juicy fruits on the tables, pleasant green from the window view, and members on the causal chit-chat in the hall, have formed the best theme for the 12th VIP Zhejiang Merchant Salon – comfort.

It is 14:00 P.M. when Salon has been officially started. As this day is coincided with Chinese traditional Valentine's Day, the compere Cai Hua, Secretary-General of Zhejiang Merchant Capital Investment Promotion Association, with a sense of humor, has presented a sudden opening joke on all participants that they prefer Salon to lovers, which has been supposed to destroy the original atmosphere of Salon, but the results has been turned out on the contrary. After the waves of laughter, the distance between the members has been getting closer. So, the next discussion session is exciting full of witty remarks.

Classical moments playback
Because the active speeches made by the participants are very impressive and vivid, we quote the most classic parts for all readers. We hope that the original words and discourse will surpass the decorated text.

Topic (1)
As a Zhejiang Merchant, what changes have taken place in the whole business environment of the past two years in your eyes?
Li Xinhai (Chairman of Zhejiang Vaton Group Co., Ltd.): I think the biggest change is capital environment, followed by the economic trends impact on the enterprises. For our private enterprises, during the enterprises development financial capital (cash flow) pressure is the most difficult problem. In my own projects, my paid tax fare is usually higher than the profits that I can earn. The second issue is the new employment system, to which I will try my best to adapt.

Huang Lianjun (General Manager of Hangzhou Blue View Venture Capital Co., Ltd.): The biggest change for me in the latest two years is that I have turned from the real industry into investment. I suppose the judgment ability is the most important factor. There is a good saying that, “Selling coal is better than digging it, buying coal shares is better than selling coal”, which means the real industrial investment needs to be lessened and shrunk, while the virtual investment market shall be expanded and strengthened. However, I also feel currently, the investment channels are too limited, only the real estate and stock market available. In short, I think that the large-scale industrial investment must be reduced.

Xu Ou Jun (Chairman of Hangzhou High Pressure Fastener Factory):”I feel the rate of interest has been changed quite obviously, and this year’s interest rates have been increased slightly than last year. I am different from several other veterans, I am doing a factory, which means the real industry from the above words. While the money might not be so much, but I still feel happy to get something done. I have always heard that real estate and the stock market are suddenly lucrative aspects. So far I know, in Jiubao area, more than 20 real estate companies have paid the most taxes, and the second is me. That’s why today I would rather to know if it’s true that the real estate and the stock market can be that profitable on earth?”

Xia Ziyun (Office Dean of Shaoxing Municipal Investment Stationed from Jiang Shan Municipal People’s Government, Zhejiang Province): You can see the form of economic changes in recent years from my stock investment experience which is really unfathomable. Jiangshan is the west gate of Zhejiang, and also an undeveloped virgin land, hope all entrepreneur members can come to visit and invest.

Gao Shu-Qiang (Chairman of Hangzhou Xinshi Logistics Limited,): I would rather talk about my company than the overall situation. I think that in recent years, the most headache is the rising prices and staff management, from the company's operation perspective. Particularly, in staff management, although we have granted high salary to our load and unload workers, they are still not easy to be managed. That’s so much for my first arrival here!

Zhang Jie (Chairman of Zhejiang Golden Key Motor Co.Ltd): I still feel that the financing of enterprises in recent years is too difficult. Heavy snow in 2007, the difficulty of financing is similar to that of snow melting.2008 is also difficult, but in 2009 there has indeed been improved. This shows that the banks have not put so great important concern on SMEs. Overall though, I feel the credibility of Hangzhou is pretty high, from my perspective, as a businessman from outside of Hangzhou.

Fang Tian Xing (Chairman of Hangzhou Tian-Xin Textile Co., Ltd.): Let me talk about my experience. In 2007, I have sensed that the textile industry can’t last long, so I spent a large part of capital into the stock market, but it was a wrong time with 5000 points, therefore I have stuck with it. Then I established two investment companies, one is in Shandong, the other is in Xiaoshan. But they all turned out not so good situation. The best investment is to purchase the shares of the credit cooperatives, it’s very reliable to get a 10% dividend annually. So I think the burden on businesses has indeed been heavy, but it’s better keep away from the investment market than going onto it blindly and ignorantly. I still have a lot to learn!

Zhan Cunliang (General Manager of sales and trading Hangzhou Business Trust Co., Ltd. and): It should be said that the economic situation of the second half of 2007 and 2008 are very tough and grim. However, the promotion campaigns of small loans and the GEM have indeed offered the sufficient support to some companies which suffer from the difficult financing. In fact, the environment has no change happened, the Government would always adjust the policy to suit the economic development.

Zhou Shitong (Chairman, Ou Hua Four-Season Trade Co., Ltd.): a few years ago, I have invested in coal mines in Inner Mongolia, Xinjiang gas fields, and coal mines in Gansu, especially, the Inner Mongolia coal mine investment impresses me deeply, at that time, the coal price dropped dramatically, but the situation has recently begun to improve, and I believe it will get better with time passing by. I have also recently invested on an airplane club, I think with the recent years’ economic situation, my property will become increasingly better.

Match the right people for the best projects.
Although the debate is very exceptional in Salon, all members can speak what is on their minds freely, but we are not Zhao Kuo, who is limited everything “on paper”. After discussing two topics, the organizers have come up with three projects full of very high investment value, which drew the great interests from all participants and a real-war-style witty debate is on the way.
1. The enterprise system restructuring project of An Qing Real Estate Development Co., Ltd of China National Group.
2. A shares private issuing of Shanghai Pudong Development Bank Co., Ltd.
3. Guangzhou Rural Commercial Bank system restructuring project proposed by Guangzhou Rural Credit Co-association.With PPT show and explanation from Salon organizers, all members’ focus has been reached a boiling point. Overall a quiet, 20 pairs of eyes firmly fixed on the big screen, and some even took out pen and paper and carefully wrote down the relevant excerpt from the project contact and precautions. It is easy to see that entrepreneurs "investment enthusiasm".

We have noticed that there is a member hurriedly left his contact information after reading the projects. He said he has forgotten to bring some name cards after a conference and did not expect today to read so many good projects, what a surprise. He hoped that he could keep the further contact with Zhejiang Capital Investment Network staff.

Gao Shuqiang, the other member is somewhat shy, has been deliberately left his e-mail, he said, as a member, he would like to receive more and better projects information.

     Right time, right location, right people, with a saying from Li Ka-shing: "looking for good projects, find the right people, divide money right." In fact, this is the tenet of service from the VIP Zhejiang merchants Salon - direct matching the capital and the project, leading the investment and financing to success, letting the elites make communication and collisions!

Still, the wine is waiting after the debate has been finished. Salon discussion part has been ended, all members have started the banquet session. With members’ own words, it is called cooking wine on the investment, the more cooking, the more full-bodied it turns out to be. Then, the a11 members said good-bye one another, one afternoon’s communication seems like five decades’ friendship, which is supposed to be the charm of Salon.