The first China equity investment institutions Jinniu (Golden Bull) award ceremony and summit forum was held in Beijing, China on August 26th, hosted by China Securities Journal and the China Wealth Research Firm. Sensegain Asset Management group was awarded the “2016 Jinniu Top Private Equity Investment Institutions”, and the title of “Top 10 Venture Capital, Private Equity, and Direct Investment firms.” In addition, Minwen Wu, Chairman of Sensegain, won the prestigious “2016 Jinniu Equity Professional Investors” award.
Shengzu Gu, the standing committee of the National People’s Congress and the vice managing director of Financial and Economic Committee, Baige Zhao, the vice managing director of National People’s Congress Foreign Affairs Committee, Zhongmin Wang, the deputy managing director of National Council for Social Security Fund, PRC, and Daojiong Zhou, former chairman of the China Securities Regulatory Commission attended the summit forum.
The forum includes the main forum, sub forums, and closed-door forums; in the form of keynote speeches and roundtable discussions. Industry regulations and supervision, macroeconomic situations, industry development projections, investment advisory, and more, have also been topics of discussion by panelists.
Minwen Wu, the Chairman of Sensegain, was invited to the forum as one of three professional industry representatives, and gave a speech with the trending topic of “New Age of Capital Markets – The New Age of Private Equity Investments.” During the speech, Chairman Wu discussed the environment of private equity investments and shared his thoughts on future developments in the industry.
“Although it seems the last 27 years of development in China’s Capital Market have been quick, it’s far from enough with respect to the perspective of social financing and social functions. We say that the market leverage is high today, which means the proportion of indirect financing is very high” said Minwen Wu, “In the new stage of the capital market, private equity investments have positive and active roles. From the perspective of private equity funds, the entire funds’ market amounts to over 10 trillion CNY, with 64% being private equity funds, demonstrating a strong future in private equity services.”
Chairman Minwen Wu then discussed the direct financing of large development spaces, the rapid development of private equity in recent years, and private equity funds supporting economic development. Mr. Wu also pointed out the new mission of PE investments: providing support to strategic emerging industries; promoting industrial upgrades through mergers and acquisitions; and participating in state-owned enterprises, or “mixed.”
Minwen Wu also spoke of the development opportunity of PE investments. He clarified the role of PE investments in the asset management industry, with being a cornerstone of innovation, cultivating enterprises, generating wealth, and supporting the economy. Chairman Wu pointed out the inadequacies of China’s PE industry by comparing the development of PE in China and the U.S.; where the number of Chinese institutions, funds, and benchmark companies is lacking. According to the research and analysis of China’s capital markets and PE industry, Minwen Wu pointed out that the private sector should strive for self-improvement, including establishing the correct management concept, improving the level of investment management, improving the corporate governance structure, and shaping social credibility.
Minwen Wu insisted that being comprehensive, public, and international, are the keys to a successful PE fund. He stated that “first, as a PE fund, we can’t use a single business model, or control China’s capital market fluctuations. Secondly, being public would allow the market and public opinion to monitor various situations; and finally, being international includes distributing capital from China’s PE funds globally, and having the ability to manage large financial institutions around the world.”
Following the main forum, Minwen Wu was invited to participate the closed forum. An exclusive interview with China Securities Journal followed. In the interview, Wu shared his ideas and thoughts about opportunities and challenges in equity investments and the roles of equity investment in regard to economic development and financial deleveraging.