Firm links finance, industrial reform

Having been at the helm of one of China's major private investment consortiums for more than two years, Li Huaizhen said the group has entered a rapid development period, with its total assets snowballing from 33.5 billion yuan ($4.98 billion) to 200 billion yuan, and he will remain wedded to the group's original goal of integrating industry and finance.

At a news conference in Shanghai on Wednesday, Li, president and CEO of China Minsheng Investment Group, outlined the six main directions for the country's leading international private investment group.

"The positioning of the group remains unchanged, and after two years of development, it becomes more focused. We will focus on three groups (in finance), which are leasing, insurance and asset management, and three features (in industry) in a response to the nation's supply-side reform, which are distributed new energy, industrialization of construction, and home-based care for the aged," Li said.

Li admitted that private capital growth slowed in recent years, but he would like to view it as an interim phenomenon, because in the long run, the investment in private business will pick up.

According to Li, CMIG's goal is closely associated with the country's concerns. For instance, pollution, including smog and haze has sparked the public demand for wider use of new energy, so the group's distributed solar power program is very promising.

Since the State Council released guidance at the end of last month requiring that 30 percent of the new buildings be prefabricated in 10 years, CMIG's strategic goal of construction industrialization fits well the new policy.

In the meantime, National Bureau of Statistics data showed there will be 220 million people aged above 60-years-old by the end of 2015, accounting for 16.1 percent of the nation's total population, so home-based care will create a huge market for related sectors.

Amid the slower private investment cycle, Li said it is time for private capital to get together with their wisdom and capital to seek mutual development, as many hands make light work.

"Our leading role has been very apparent in the past two years, and as I know, several other private investment groups have become operational in Zhejiang, Jiangsu and Xiamen," said Li, adding that a large private investment consortium has especially strong vitality.

China is CMIG's focus with more than 80 percent of its business in the domestic market. But Li also noted that the group is consistently seeking business opportunities overseas, including the Belt and Road Initiative.

Roland Berger, founder of Roland Berger Strategy Consultants, said considering its strength and scale, CMIG will make great contribution to the Belt and Road Initiative.

Li and Berger made such comments in Shanghai one day ahead the third meeting of the CMIG Global Advisory Council on Thursday.

The group has to date formed a consulting committee from all over the world since its think tank was set up in January 2015.

"I think our think tank has truly played its role in CMIG's development," Li said.

CHINA DAILY