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Ma Yanchao of Lion City Capital: Chinese industries cannot go overseas blindly and need to clarify their own needs

2024-08-06

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21st Century Business Herald reporter Yan Qi reports from Beijing

21st Century Business Herald, 21st Century Venture Capital Research Institute and Tsinghua University School of Economics and Management successfully held a closed-door seminar on "Cultivating 'New Quality Productivity': Scientists and Investors on the Road to Innovation", and jointly discussed topics such as supporting China's basic science and applied science research, exploring unknown areas, creating social value, extending capital value, and capital helping to transform scientific and technological achievements into new quality productivity.


Ma Yanchao, partner of Lion City Capital, shared his views at the event. Founded in 2019, Lion City Capital is a private equity investment company with a background in Southeast Asian financial groups, dedicated to the layout of the new generation of information technology, consumer technology, and green technology.

Ma Yanchao said that Lion City Capital is positioned as industrial capital, closely following the national industrial development trend, and has rich experience in cooperation with local government-guided funds. It works with local governments to create an industrial ecosystem with regional characteristics. On the one hand, it uses government resources to strengthen the investment advantages of funds; on the other hand, while promoting Chinese capital going overseas, it also introduces excellent companies from Southeast Asia and other regions to promote local industrial development and achieve win-win results. At present, it has reached strategic cooperation with Xiamen, Guangzhou, Anhui and other places.

Under the Belt and Road Initiative, the wave of Chinese enterprises going global and the rapid development of emerging industries in the Southeast Asian market have created historic investment opportunities in the China-ASEAN Economic Corridor. With its deep background as a Southeast Asian financial group, Lion City Capital has established a management entity, Lion X Ventures Pte. Ltd., in Singapore to invest in early-stage technology companies in Southeast Asia, with a focus on new digital infrastructure, industry digitalization, new traffic ecology, and ESG.

Regarding Chinese companies going global, Ma Yanchao believes that "not all countries in Southeast Asia are blue oceans. The desire to invest in new markets has caused the Southeast Asian market to grow too fast to a certain extent, and there is also the risk of market fluctuations. For Chinese companies, not all companies are suitable for landing in Southeast Asia. The industry in which the company is located and its different needs at different stages of development directly determine the choice of overseas destinations and the different strategies needed to go global."