In today’s rapidly changing business environment, professionals need to constantly expand their knowledge boundaries to adapt to new market trends and career challenges. Understanding financial concepts such as debt, equity, and venture capital funds can not only help professionals better understand corporate operations and market dynamics, but also provide unique perspectives and opportunities for their career development.
In order to promote academic exchange and promote intellectual collision, the Master of Science program in Management at the Chinese University of Hong Kong (Shenzhen) has established a platform for teachers and students to interact with each other in terms of teaching and learning – MBM Sixianghui. The aim is to focus on academic and industry frontiers, share the latest information, and empower individuals and businesses.
In September 2023, Jiang Yucai, Honorary President of Shenzhen Venture Capital Association and former Vice President of Shenzhen Venture Capital, visited MBM Sixianghui and brought a wonderful sharing about venture capital and real estate fund investment. Jiang Yucai, with his rich industry experience and profound professional knowledge, has deeply interpreted the basic concepts and structure of the capital market, from the debt market to the equity market, as well as the social development trends of venture capital and venture capital funds. He has demonstrated the complexity and diversity of the capital market and helped the audience construct a comprehensive and three-dimensional cognitive framework of the capital market.
A panoramic depiction of the capital market
The understanding of the capital market has a profound impact on individual career development. It not only relates to how individuals effectively manage finance and enhance professional competitiveness, but also involves key areas such as corporate strategic planning and risk management. Jiang Yucai first introduced the basic concepts and structure of the capital market, including the debt market and the equity market, providing a clear panoramic view of the capital market, allowing the audience to better grasp the operating mechanism of the capital market. Then, he further explored the characteristics and risks of the primary and secondary markets, the regulatory policies of the country on the secondary market, as well as the positioning and preferential policies of different sectors. These insights provide practical guidance on how to make wise investment decisions in different markets, and effectively help MBM students build a fundamental perspective on the financial industry by explaining the differences between different markets in a simple and concise manner.
This perspective not only enhances the cognition of professionals, but also greatly benefits their career development. Many past graduates have expressed that in the process of studying MBM, in-depth communication and exploration with students from different industry backgrounds have greatly enriched their thinking and knowledge system, and broadened their industry perspective. This cross disciplinary interaction not only enhances their ability to flexibly switch and integrate industry and investment perspectives, but also forms a unique competitive advantage in the workplace, helping them to smoothly advance to higher management levels. Some graduates have successfully achieved a significant transformation within the industry, such as transitioning from traditional industries to the financial sector, opening a new chapter in their careers.
The Key to Venture Capital and Talent Literacy
Venture capital, as a capital operation method for equity investment in unlisted start-up enterprises with high growth potential, its core lies in participating in the entrepreneurial process of the invested enterprise through entrepreneurial management services, and achieving capital appreciation benefits through equity transfer after the enterprise matures. However, due to the lack of unified norms and standards in the venture capital industry, many excellent entrepreneurial projects find it difficult to obtain effective investment and resource support. To address this issue, it is particularly important to establish a “venture capital fund” mechanism.
When analyzing the importance of venture capital in depth, Jiang Yucai emphasized the key role of venture capital funds in promoting the socialization, standardization, and professional development of the industry. He pointed out that when discussing entrepreneurial funds, we must recognize that their essence is a cooperative relationship based on trust and authorization. The good relationship between GP (fund manager) and LP (fund investor) is crucial for the success of the fund. This relationship requires GP to have a high degree of credibility and professional ability to safeguard LP’s fundamental interests and full right to know; At the same time, LP itself should also have long-term capital with risk tolerance, the ability to select and supervise GP, and sufficient recognition and respect for GP and industry to support GP’s decision-making power and relative interests.
Jiang Yucai further proposed that future entrepreneurial investment will exhibit a trend of specialization, scale, and branding. In order for entrepreneurial funds to achieve large-scale development, they must prioritize the fundamental interests of LPs, maintain transparency in relationships, and have a professional and reliable GP team for efficient communication. They must also have a long-term stable source of LP funds, as well as a relaxed and favorable external environment including tax policies, regulatory systems, legal protection, and other aspects.
In terms of enhancing entrepreneurial investment capabilities, in addition to the accumulation of daily work practice, systematic learning of business management knowledge is also indispensable. The Master of Science program in Management at the Chinese University of Hong Kong (Shenzhen) has identified significant barriers between the domestic industry and capital in its early research. From an academic perspective and the development of the entire Guangdong Hong Kong Macao Greater Bay Area, the effective integration of industry and capital is inevitable. So the MBM project is based in the Bay Area and has launched a composite talent training model of “finance+management+industry”, setting up three core elective directions: innovation and entrepreneurship management, investment management, and comprehensive management.
MBM continues to conduct in-depth analysis of the development trends and macroeconomic changes in the global financial market, focusing on the technological development and experiential innovation of future high potential industries, and gathering advanced management practice cases in global production and manufacturing. Truly integrate the course theme of “making entrepreneurs better understand management and capital better understand industry” into the entire curriculum system and teaching management process. This educational model not only deepens students’ understanding of financial markets, enterprise management, and industry trends, but also more effectively helps match talent development with regional economic development goals, cultivates composite talents who not only understand the operation of financial markets, but also have a deep understanding of enterprise management and industry development, thereby promoting the effective integration of industry and capital and accelerating the high-quality development of regional economy.
Reform and Outlook of Real Estate Funds
Jiang Yucai deeply discussed the important reform role of real estate fund investment in the Chinese capital market, as well as its profound significance for social investors and infrastructure construction.
“Real estate fund investment is a major reform of China’s capital market. It can meet the needs of most social investors for stable returns and low risk, provide securitization channels for high-quality real estate assets, and provide financial support for domestic infrastructure construction.”
In March 2023, the government officially approved seven real estate private equity investment fund management companies for pilot projects, marking the expansion of real estate fund investment from a single residential area to a wider range of residential and commercial housing sectors. The implementation of this policy not only broadens the investment field of real estate funds, but also brings new vitality to the market.
In the future, the development direction of real estate funds will focus on structural optimization and restructuring of the entire real estate market. Through the means of fund and securitization, real estate funds will achieve overall ownership and specialized operation of special purpose properties, thereby improving the level of asset returns. This not only brings more stable investment returns to investors, but also effectively promotes the development of the entire real estate market towards a healthier and more stable direction.
Conclusion:
Venture capital and real estate fund investment are two important areas in China’s capital market, and they are also indispensable cognitive maps for contemporary business talents. Since its establishment in 2019, the Master of Science program in Management at The Chinese University of Hong Kong (Shenzhen) has been committed to cultivating high-end business talents who can adapt to the needs of the times by providing comprehensive and up-to-date business management courses. The MBM project not only focuses on enhancing the depth of talent in business knowledge and management skills, but also values empowering them with a global perspective and multidimensional thinking abilities. Through cross platform and cross industry skill development, the MBM program has opened up a broader career path for students, enabling them to navigate changing work environments and achieve career leaps. At present, the first batch of admissions for the Master of Science program in Management (MBM2025) at the Chinese University of Hong Kong (Shenzhen) is underway. Interested students are welcome to inquire and learn more.