cloud network hunting note: according to Dealogic, so far this year, huaxing capital of the company’s offerings in China ranked second on the list underwriters after ubs, more than credit suisse and merrill lynch. This paper preliminary discusses the rise of huaxing capital’s secret, which reviews the package from others are real candid personality, that’s why he contacts strong, because he is very good affinity.
source: the New York times
when guo to disease or Google China chief strategy officer, who has worked with bao fan, a banker in Beijing, talk about the future of China’s Internet. Two people share in the chat each other’s views and opinions, by the way, talking about the people in the industry. Huaxing capital investment bank, created in 2004, before the package who worked in China for a technology company and chief strategy officer, sometimes when he urged Mr. Guo to practice his plan.
package all recalled: “I asked him why he still work at Google, rather than their own business. He didn’t say anything at the time, just to show a clear smile. At that moment, I will know that he is aware will one day be starting my own business “.
Package all of it later proved to be true. Later he help guo to disease to raise start-up capital founded mainly engaged in the electronic commerce industry LightInTheBox (lanting collection of potential). Last year, when guo to disease decided to take the company public, founded his preferred is package all domestic investment bank, huaxing capital, although huaxing capital before this has yet to provide IPO services.
guo to CDC said: “for a long time, I and all who maintained a long-term relations of cooperation”. He talked about the reason why he hired huaxing capital, “they really understand the Chinese market, they are truly the deepening China’s market, familiar with industry, the most important thing is that they really understand us.”
for bao fan, won the Chinese at the start-up stage of friends from all walks of life in China with the rapid development of capital business has played a very positive role. LightInTheBox listed in New York after 14 months, huaxing capital has successfully passed some international big investment Banks on Wall Street. So far this year, according to Dealogic, huaxing capital of the company’s offerings in China ranked second on the list underwriters after ubs, more than credit suisse and merrill lynch.
Package with all the rapid development of huaxing capital and success, in a sense reflects by Chinese companies through the transfer of wealth in the IPO. From the mid – 2011, due to a large number of false accounting scandal and short for Chinese companies, Chinese companies delisted from the United States market, one after another of offerings in a Chinese company had frozen.
but demand recovery this year, as prices stabilize extensively, U.S. stock index soared, pushing the technology valuation of the company. In the United States so far this year, the new funds of listed Chinese companies raised $3.5 billion, more than from a total of 2009 to 2013. Next, China electricity giant alibaba could come as early September offerings, is expected to raise up to $20 billion, then it will be one of the largest IPO in the history of the American market.
although huaxing capital not cent piece to alibaba IPO business, but with the large number of listed company of science and technology of China recently, huaxing capital has also been made. These listed companies including the Chinese version of Twitter, sina weibo, which raised $285 million in April, also include alibaba’s main rival in the field of electronic commerce jingdong (JD.com), which raised $1.8 billion in May, this is by far the largest Chinese Internet companies listed in the United States.
words to this, we have to sigh again, interpersonal relationship is very important. Package with jingdong founder liu met for the first time in 2007, shortly after, liu was shut down a pile of traditional electronic shops in Beijing, began his career as a web startups.
package all that talk about liu said: “when I first saw him, didn’t feel anything special, but he is confident, confidence in his business, and so I think he must know something I don’t know.”
Over the past seven years, package with jingdong (formerly known as 360 buy.com) has been keep in touch and cooperation, and participate in the most of the financing transactions, jingdong including in April this year with a $215 million price to sell a 15% stake in the company to one of China’s Internet giant tencent. Since they were launched in May, jingdong’s share price has risen by about 45%, and liu in jingdong stock market capitalization of about $8 billion.
bao fan said: “huaxing capital’s vision is to really find these top entrepreneurs, at startup and build relationships with them, and accompany them all the way to grow, and growing.”
package every head is not high, the 43-year-old, practiced comprehensive combat (MMA), love designer t-shirts, hadn’t collar and tie. He was born in Shanghai, all the parents work in the government. But he smiled that he is not powerful, neither officer the second generation, nor is it a rich second generation.
in 1990, he left China to study for a master’s degree in economics in Norway. In the late 90 s before they headed to work in Hong Kong, who worked in London and New York credit suisse and Morgan Stanley, after in Morgan Stanley in Hong Kong, focused on the areas of TMT company.
in 2000, who left Morgan Stanley, become the cica group chief strategy officer. Cica group is a leading communication software and services provider in China, is also one of the earliest Chinese technology companies listed in the United States. Around the cica, he made many of China’s emerging startups, expand his contacts in the entrepreneur.
he said, “this guy is very smart, very flexible, very ambitious, most people with culture in silicon valley, and they all have company financing demand.”
, he added, “but their size is too small, the big investment Banks does such business, I saw the opportunity, the loyalty of these entrepreneurs to friends, bound together with them in the morning.”
as a result, in 2004, bao fan decided to entrepreneurship, founded the huaxing capital, initially mainly engaged in small private financing deal for the corporation, to attract the early-stage venture capital for them.
Duncan clark (DuncanClark), package every colleagues, with Morgan Stanley in Hong Kong in the 1990 s the incumbent chairman of BDA China, a consulting firm BDA China is Beijing, mainly engaged in digital and consumption), commented: “huaxing capital has rapidly grow into a big investment bank. In the face of competition from the international big investment Banks, its early days and the pain. However, huaxing capital then found those far below the international big investment Banks in private financing in the transaction of the minimum contain huge business opportunities, and such deals fairly profitable.”
in a broad sense, the main business of huaxing capital position in science and technology company, the main customer base for China’s “new economy” situation arises at the historic moment of the company, the company through the adoption of high-tech innovation means of the Internet, is transforming including retail, education, health care and logistics, etc., traditional economy.
“if you want to invest in China, in addition to these technologies, there is no other good investment projects, because other projects have died,” said bao fan, “only technology companies are growing.”
this includes online auto media – easy car (BitAuto) group, the company can provide different dealers across the country are vehicle price, as well as industry news and commentary. In 2007, huaxing capital to help the company raised $15 million in funding from investors, including silicon valley in the United States and Beijing venture capital firm DCM has offices. In 2010, BitAuto on sale in America, five times its share price has doubled.
chao, co-founder and partner of DCM, know bao fan for many years, in an E-mail reply said: “smart, clever and hardworking investment bankers everywhere, bao fan from others are real candid personality, that’s why he contacts strong, because he is very good affinity.”
bao fan said: “you could say that we didn’t start from last year, you could say we got started 10 years ago, this is we in interpersonal relationship these years investment in form of monetization effect.”