New energy includes not only the development of new fuel sources but also the efficient use of energy. We are currently assisting in the financing of an energy-saving company in Beijing. The energy saved by this company per year is equivalent to the energy output of two years' worth of solar batteries produced by Suntech.

The third is "New Lifestyles," bringing innovation of traditional businesses. For example, in education and health care, new services are appearing with increasing frequency. In addition, new opportunities for growth exist in a few traditional industries. Home Inn, for example, the budget hotel chain that recently held its IPO on the U.S. stock market, is relatively representative of such traditional businesses.

Some people say that capital is a double-edged sword. What is your view? How would one properly wield this double-edged sword?

This is also something that I wish to clarify and I'd like to remind domestic businesses that whether you are seeking venture capital or private equity, they are both indeed double-edged swords.

When a company is seeking outside investors, it should be clearly conscious of its own goals and bottom line. If, however, it is just blindly following some whim and basing its decisions on the example of other businesses, then there is a real chance that the company could end up hurting itself with this double-edge sword.

Of course, most of the time, venture capital firms are attempting to help the companies they invest in by making improvements to their business structure, management and sales. However, the perspectives of the business owner and outside investors are inherently different. How to handle their relationship is a question that every business taking in financing should consider first.

How do you view the future of China's capital market?

China possesses vast amounts of capital resources and ranks at the world's forefront in both the savings ratios of its residents and their total savings volume. China also has large numbers of rapidly developing business groups with an unquenchable thirst for capital.

Currently, those businesses, often regarded as the "China story," can only rely on private equity and venture capital for funding. The overseas capital market is their main battlefield. What domestic capital, currently represented by China's stock market, can offer them is too little.

As can be foreseen, when the time comes for the "China story" to involve China's stock markets, China will face a whole new wave of domestic and overseas investment. China's economy will also enter a new era.

(Xinhua Finance)

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