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Finance vs. Technology, sticking to the main power of Shenzhen
The 2th LVGEM Consensus Expert Series Forum initiates a debate of Shenzhen’s main power

Every city has a life, natural and rich. If the center of the city is the heart of it, then what constantly drives the development of the city, and gives birth to the power of a city’s progress is just like the soul of the city. All along, Beijing is known as “empire capital”, the modern bustling Shanghai was known as the “Magic City”, while rising star Shenzhen is called “dream capital.” In 1979, Shenzhen as a “window” opened the prelude to economic reform in the Mainland. Today, the myth “rise from the ground” across the river has become history, but once the “window” is increasingly becoming a vibrant Dream City, city of the future, with the gradual completion of a blueprint for a modern city. In these 30 years, Shenzhen has an average annual GDP growth of 25%, an alarming rate. Careful studying the evolution of these underlying economic data, it is easy to feel the evolution and trajectory of Shenzhen from “Speed Shenzhen”, “Effective Shenzhen” to “Quality Shenzhen”.

Undoubtedly, Shenzhen represents a new force in Chinese cities. On September 22, the “ideal city center consensus” second expert series forum “Looking for central power” initiated by LVGEM Group began in EPC Art Center. Invited are two experts from investment industry and entrepreneur — Shenzhen Eastern Harbor Investment Management Ltd., founder & chairman Dan Bin, Shenzhen Chengzheyun Science and Technology Co., Ltd. CEO Zhou Kang, to give speeches.  Young scholars, Shenzhen TV special comments members Mali Ming as a guest host, brings the audience an auditory feast. From the first forum of “Find the center of the city” to “Finding the central power”, the Forum’s thinking of city’s core value upgrades again. Physical dimensions of the central area is to create for the population and defined by central groups. The forum on September 22 focused on central figures who represents central power, inviting them to share their reflection and orientation of the power of city center.

Dan Bin: value investment starts from the heart

Shenzhen speed has made Shenzhen capital market a myth. Capital an unavoidable topic when talking of Shenzhen’s central power. In mid-2015 after three A-share stock market crash. The secondary market valuation was confusion. Whereas Tencent became the company with the largest Market Cap in Asia, Dan benefits from holding Tencent’s shares for many years. Dan Bin, China’s Buffett shares his way of investment with guest in the forum. In addition to sharing his understanding and ideas of his long-term investment in Maotai and Tencent stock, Mr. Bin also repeatedly referred in his speech the viewpoint in his book “Rose of Time” written in 2007: prize of China’s properties in core cities might become the most expensive in the world. Fast forward nearly a decade has passed, and now the fundamental point of his view has been verified. He suggested that having properties at urban core area is the best way to keep wealth.

Other than sharing his investment philosophy and his understanding for investing in the city cores, Dan also mentions his interpretation for investment philosophy and investing in city cores.  “People who abandoned Shenzhen 10 years ago must now feel regretful.” Mr. Dan Bin mentioned in his sharing, from his viewpoint, Shenzhen has a bright future. Here has brought together financial, high-tech and real estate companies. Almost every day there is a new listed company, and finance determines the future of a city. Dan Bin compares Shenzhen ass the eye of the dragon China. He shares his story of coming to Shenzhen in 1992 with a few hundred dollar. Belief, perhaps is the secret of his success. He mentioned in his speech that an investment must have faith. The reason why Shenzhen and China has a bright future is that in the world it is rare to have China one where majorities of people’s biggest pursuit is to make money, and it is this belief that has become a source of to support the power of center.

Zhou Kang: the center of Shenzhen is science and technology

Innovation is the innate gene of the city Shenzhen. This is another topic of Shenzhen’s city. The second invited forum guests, Shenzhen Cheng Zhe Yun Technology Co., Ltd. CEO shares his thinking of the power of innovation in Shenzhen. Zhou Kang defined Shenzhen as an efficient, pragmatic, tolerant city, and put forwards a point of view that “the center of Shenzhen is science and technology, the center of science and technology is the intelligent”. He believes that the era of Intelligent is the future trend of the mainstream of the development of Shenzhen, because Shenzhen has an unparalleled advantage of hardware in China, plus software, cloud services, algorithms these three factors, so that Shenzhen has become the intelligence center. This force will drive Shenzhen rose to a new height.

While Zhou Kang also presented his thinking about the future of Shenzhen, he believes that more and better universities is significant in promoting science and technology. With enough innovative blood, the city should be able to become another “Silicon Valley.” Shenzhen is already the world’s, and it will soon become the center of the world. The sentence “When you come you are Shenzhener” will be expected to be changed to “when you leave Shenzhen, you are still a Shenzhener”. This will become Shenzhen’s impact on the world.

Central force is not elsewhere

In the ensuing exchange discussion, young scholars, Shenzhen Satellite TV Commentator Mr. Ma Liming and Dan Bin, Zhou Kang regaling have heated discussions, providing a feast of thinking for present guests.

A dream world, a dream come true. In the era of entrepreneurship and global capitalism, Shenzhen has become the master node. Shenzhen this young city suddenly becomes famous. , Wealthy city, innovative city, renowned names earn its reputation internationally.

Several guests have recognized, on the road of innovation and development of Shenzhen, capital is becoming the blood of Shenzhen innovation enterprise, and innovation is bound to become the next big opportunity for capital. Center Force does not lie elsewhere, capital and innovation has never been antagonistic genes of the city, but are symbiotic, and are engines of future development of Shenzhen economy. It is an evitable manifestation of Shenzhen’s central power.

In interactive sessions, what is the most valuable investment has become a hot problem. Dan Bin once again underlined his point that in the real estate investment analysis – real estate investment in the urban core area of core cities is very optimistic. He jokingly said that he believes that buying a house is like buying stocks, you got to buy core cities and core areas, these houses are equivalent to Maotai and Tencent, you are not afraid of its falling, cause it will fall back. The Analogy sparked a laugh, giving rise to happy and harmonious atmosphere.

This is the second forum LVGEM expert consensus forum. Previously the first forum has discussed hot topics “Look for city center”, that is where is the center of Shenzhen. This is a discussion of physical space dimension. The second forum continue this topic and further dig out core value of the discussion. This time the theme is “Look for central power”, an upgrade version of the last forum. Since the initial launch of discussion of this public topic, it was said,” where I am, where the city center is”. People with central power will give rise to city center. The center of the city is born from central group and controlled by them. The invited guests of this forum is a representative of central group. They stick to their central power, change with the city, to build value of the city.

LVGEM Group said the forum was a continuation of the first phase, from urban planning to exploration of urban value, from the feature of Shenzhen as a “Capital Myth,” and “entrepreneurial city”, giving rise to a peak dialogue between capital operators and entrepreneurs, combining experts’ viewpoints, causing extensive discussion and thinking, leading the audience to believe in the value of the city of Shenzhen and the industrial system, promoting united recognition.

As Shenzhen urban renewal pioneer, LVGEM Group said, this year public discussion of “looking for the city center” sponsored by LVGEM, has generated widespread repercussions in various industry and society. The proposition of the theme “City Heart, LVGEM Heart”, reflects that LVGEM has always been concerned about the core values of the city, focusing on core values of the mainstream of urban population. The forum starts from the perspective of investment and entrepreneurs, aiming to resolve the localization of the value and opportunities of “the power of city center” in the midst of changing market operation in changing market operations, looking forward to create ideal city together with everyone.

LVGEM “Ideal city, Center consensus” expert forum 2th
Expert viewpoint summary

Dan Bin – LVGEM consensus forum II

Point 1: an investment needs to have faith, as long as China does not go into war, the future economic development will certainly continue, the future will be better scale, around 2028, China will overtake the US as the world’s largest economy.
Point 2: factories, headquarters, education, health care and other resources are gathered in large and medium cities, driving an irresistible trend of China’s population urbanization, creating huge housing demand. If the future of China’s economy is twice that of the United States, Shenzhen and other cities will become a truly world-class cities.
Point 3: Why China is the future, an essential reason is that China is one of the world’s rarest countries where majority of people take the pursuit of money as their faith

Point 4: People who abandoned Shenzhen 10 ago must now regret. Shenzhen definitely has a future. There are financial, high-tech, real estate companies gathered here. Almost every day there is a new listed company, and finance determines the future of a city. Why New York is the center of the world, because most capital gathered there, so we all know that housing prices in Manhattan (is high).
Point 5: Financial except, of course, in addition to capital, Shenzhen is now the development of this cultural gathering, such as Greenview organized this event, is a good representative.
Point 6: In addition to Maotai, as a Shenzhener, if you do not invest in Tencent, then it is very regrettable. If Richard Li holds Tennent’s stock and does not sell, his wealth will exceed his father Li Ka-shing’s life efforts.
Point 7: investment needs long-term adherence, the insistence for Shenzhen, for China.  No matter how good a thing, if you do not insist you cannot have it. If China is a dragon, Shenzhen is the dragon eye. Why housing prices of China’s core cities will become the world’s no. 1? Many people may be difficult to understand, I came to Shenzhen with several hundred in pocket in 1992, and Shenzhen’s housing prices was high for young people. For today’s young people, when they came to Shenzhen to see such a high rate, including Beijing, Shanghai, Shenzhen, it seems very slim, no hope. But in fact I think as long as China has a relatively long-term development, as long as everyone strives there still has a chance.

Zhou Kang – LVGEM consensus forum II

Point1: Love Shenzhen’s attitude. Everybody is willing to share their knowledge of information, and even introduce customers to competitors. This is because everyone is doing things in the most efficient way, do not waste each other’s time. Staying in a hotel a month, every day after dinner, you will see the tower in the opposite has light on until midnight. You see the pragmatic and hard work, see the tolerance of gypsy singer singing. So I’m sure the city is efficient, pragmatic, inclusive. It is the city I want.

Point 2: Intelligent age comes, why Shenzhen will be the center of intelligence? We look at the technology involved in intelligence: software, hardware, cloud services, algorithm, called hard and soft cloud calculation, in which hardware has a very obvious feature – it is related with geography. We look at software, cloud services, algorithms, these three directions, in almost any location around the world you can do, you can put a team located anywhere in any city. Only the hardware, the best possible choice for the world will only be in Shenzhen.
Point 3: the city of Shenzhen has accumulated a hardware ecosystem for decades, not only it has most of the factory and the most abundant resources in the supply chain, but also the best hardware R & D personnel. This is the incomparable advantages, and in a short time it is completely unable to transcend. Any companies who do hardware, almost always choose to locate in Shenzhen, because the biggest concern for a company is cost of human labor and time. In Shenzhen, you can quickly find the most wanted people; you can quickly find the right partner; you can quickly put R & D to build up.
Point 4: If there are more good Shenzhen University, Shenzhen, I think it will soon become another Silicon Valley and even beyond.
Point 5: Shenzhen has a pragmatic spirit, the attitude of the city “When you come to Shenzhen, you become a Shenzhener”, as well as touching air and greenery. Here to see everyone’s eyes are filled with dreams, where dreams convene, that will create miracles.
Point 6: Shenzhen is already the world’s Shenzhen and will soon become the center of the world. When you come to Shenzhen, you become a Shenzhener. We hope to change it into “when you leave Shenzhen, you are still a Shenzhener”, which will be Shenzhen’s impact to the world.

LVGEM Consensus Dialogue Forum

Dan Bin point 1: Why are so many colleges and universities in Shenzhen project, because Shenzhen does not use up money. This is the advantage of Shenzhen catching up from behind. So I was not too worried foundation of Shenzhen’s college and the talent pool situation in Shenzhen.

Dan Bin point 2: There are two points for capital market, one is supply and demand, if there is a greater amount of future supply, the market will face pressure; the second is the valuation, in addition to blue chips, the valuation of A-share market in general is still relatively high, even the highest market of the world, the future may not be good to do, in fact, now the market has been very good to do, it takes time to restore and re-balance, I feel there may have good opportunity in 2018 years.
Dan Bin point 3: For a house, I have been inclined to buy a house in the heart of the city core, which are equivalent to Maotai and Tencent, you are not afraid of its falling, it also fell back. But in each second-tier cities, it’s not the same, because of the situation in Hangzhou having syndicated loan business, so many business owners sell their  house, prices going down many years, and now after Shanghai is hot, there continues to be a migration to Hangzhou, but can that be sustained ? If I was in Hangzhou, then I would be to buy a house next to West Lake, if you buy a place in a relatively isolated place, I think the pressure is still relatively large.

From the psychological perspective, Chinese people follow up and do not follow fall. What is more worried is that when the price goes up, it never comes down. Such as the house, one million, you can afford to bite the bullet, if it rose to 1.5 million, 2 million, cannot afford, it will provoke people’s desire to buy it.

As a rigid demand, if you are very urgent to buy a house, then do not care about the ups and downs. If it is an investment, if it is possible, go to Manhattan to buy. In China, buy in Shenzhen, Shanghai, and core areas of Hangzhou.