Our View

We believe that great investors are powerful analytical thinkers with sharp minds and strong business acumen. Leveraging their willpower, intelligence and determination, they seek to continually upgrade their “personal computing power” and enjoy all-rounded self-development.
Dr. Hongjiang Zhang recently appeared on CGTN English Channel’s “Dialogue with Yang Rui.” Dr. Zhang engaged in a fascinating discussion with host Yang Rui on the topic of “issues that have emerged during the course of the development in the artificial intelligence (AI) sector.”
Three years into this prosperous and dynamic world of the new economy, we have just got ourselves a foothold to start. 2017 was the year of what the company called “The Year of Prominence.” It was at this third anniversary that the company achieved the success of Phase III of RMB and USD fundraising. While the Phase III RMB fund continued to attract more leading enterprises (entrepreneurs), it also received investments from national guide funds, top-grade FOFs, and mega state-owned enterprises. Like its RMB counterpart, the Phase III USD fund acquired abundant investments from many sovereign wealth funds, charity funds, pension funds, FOFs, and family foundations. A successful Phase III fundraising has always been considered a significant sign of “prominence” by a portfolio management company. We are fortunate that our diligent work helped to establish such a firm foundation.
On August 17th, Huaxing Alpha hosted the Impact Investment Summit of 2017 in Beijing with the theme, “Tear Apart the Opportunistic Theory and See the Truth”. The summit included expert investors from renowned institutions as well as elite entrepreneurs from technology and new consumption industries for in-depth discussions. The summit attracted the interest and attendance of nearly 2,000 industry entrepreneurs and investors. This year’s summit, from August 17th to August 18th, offers two full days of discussions on frontier topics surrounding “the era of technological scenarios” and “the rise of new consumption”. The aim is to discuss “hot topics”, uncover the truth and analyze the essence of business.
According to 01Caijing’s “2016 Annual China Consumer Finance Development Report”, peer-to-peer consumer finance capital reached 99.1 billion RMB that year, an increase of 90.9% compared to same period last year. Conservative estimates of the 2017 figure stand at 200 billion RMB. The securitization of consumer finance capital is also accelerating. 2016 saw the issuance of 51 asset-backed security products for consumer financing, totaling 93.632 billion RMB, 6.76 times the amount in 2015.
It’s only been a little over ten years since the beginning of China’s venture capitalist industry to today’s hyper-competitive environment.  How did the industry become so hot? How can one excel as a venture capitalist? Many young people are eager to find answers.

 Source Code Capital's co-founder, Cao Yi, is qualified to answer these questions. Even before graduating from college, Cao Yi had already stepped into the venture capitalist industry. He was part of China’s first wave of domestic venture capitalists and witnessed the industry’s entire journey from birth until now.
It has been roughly 20 years since the establishment of the “Three Great Portals" - Netease, Sina, and Sohu. The history of China’s rapidly evolving information industry is just as magnificent as the first and second Industrial Revolution. The market value of the entire industry has grown exponentially from under a hundred billion in 2004 (the year I ‘strayed' into the venture capital business) to around 700 to 800 billion today. Tencent's market value went from about 1 billion US Dollars at its IPO in 2004 to 260 billion US dollars today. It has since been recognized as one of the most valuable Asian companies, along with Alibaba.
Cao Yi established Source Code Capital in 2014. Today, the company’s investments span numerous segments, including Internet finance, industrial Internet, gaming, media and entertainment, online-to-offline, as well as the increasing presence of Chinese virtual/digital products in the global market.