In April of this year, Uxin released the third quarter financial report for the 2021 fiscal year. The financial report shows that as of December 31, 2020, Uxin Group’s 2C transaction volume was 2,307 vehicles, and the total revenue was 323 million yuan, an increase of 322.6% from the previous quarter. In addition, the company’s consumer net recommendation score (NPS value) increased from 30 points in the second quarter to 42 points, which also shows that Uxin used cars have improved in terms of revenue and word of mouth. “As the first Chinese second-hand car e-commerce company to list in the United States, Uxin was the first to be optimistic. However, the capital market will not tolerate the Chinese concept stocks not making money for a long time. See it.” An analyst told AI Finance and Economics. AI Finance News learned that Uxin was founded in 2011 by Dai Kun, the former vice president of Bitauto Group. Since its establishment, Uxin Group has attracted American Warburg Pincus, Baidu, Tencent, Hillhouse, Tiger, KKR, Junlian Investment by investors and international investment institutions. However, in the ten years since Uxin was founded, the market environment it faced has become more and more complicated. Beginning in 2012, used car e-commerce companies have gradually been favored and sought after by capital. There have been four used car e-commerce companies with multiple business models of B2B, C2B, B2C and C2C. “Continued” has also become an annual hot word in used car e-commerce. Uxin’s initial main business consisted of two highly synergistic parts: Uxin used cars and Uxinpai. Uxin used car is a B2C business that sells used cars to individual consumers, while Uxinpai is a B2B business that provides services to car dealers. At that time, in order to stand out from the fierce competition of used car e-commerce platforms, Uxin invested more than 5 billion yuan in advertising expenses between 2016 and 2019. In order to seize the C position, Uxin invested 180 million yuan in the exclusive title of the well-known variety show “Running Brothers 3”, and used 30 million yuan in advertising fees to photograph the golden 60-second advertising space of “The Voice of China” “Champions Night”, refreshing The price record of a single advertisement on Chinese TV. Under viral marketing, Uxin has become a well-known used car platform. However, behind the high volume, Uxin has never been able to build itself into a profitable company, and was even exposed to “fake car source data” and “fake financing information.” In June 2018, Uxin, which had narrowed financing channels, chose to go to the capital market to raise funds and went public. Uxin’s prospectus shows that Uxin has been in huge losses before its listing, including a loss of 1.39 billion yuan in 2016 and a net loss of more than 2.7 billion yuan in 2017. In 2019, Uxin’s annual continuous operating business loss was 1.292 billion yuan, a significant reduction of nearly 50% from 2.488 billion yuan in the same period in 2018. In order to achieve profitability and positive cash flow, Uxin’s operating model has been changed and changed. There are attempts from B2B, B2B to C2C. However, this also failed to bring stable cash flow to Uxin used cars. On the contrary, huge debts and tight cash flow made Uxin attempt to sell back its core business through divestiture. Starting in 2019, Uxin began to increase its cash flow by selling business lines. In July 2019, Uxin sold Golden Pacer, a used car finance business line, to an auto finance-related company controlled by 58 Group for US$100 million in cash; in January 2020, Uxin divested its accident car auction for RMB 330 million The business “Fengshun Lubao” was sold to Boche.com; in March of the same year, Uxin sold its B2B used car auction business to 58.com again for US$105 million in cash. “In the past two years, Uxin sold its financial and Uxin auction business, and basically sold its core assets. Coupled with layoffs and store closures, I am afraid there is only one empty shell left.” In April this year, one person. Investors commented. In fact, since the second half of 2019, used car e-commerce companies have entered a reshuffle period. There are challenges such as declining passenger flow, declining sales, reduced car sources, and increased financial pressure. Some leading second-hand car e-commerce companies have even been rumored to close down. Entering 2020, China’s second-hand car transactions are all down. The performance on the industry side is that the entire used car market is in a downturn. In terms of total volume, China’s second-hand car transaction volume in 2020 was 14.341,400, a decrease of 581,400 from 2019, a year-on-year decline of 3.9%. In terms of platforms, the market value of Uxin’s second-hand cars fell by nearly 90% after the acquisition, with serious losses. The scale of Guazi’s carefully selected stores for second-hand cars has shrunk, and the business positions of some stores have begun to shift from shopping malls to lower-cost parking lots. Under this circumstance, people and vehicles in the industry are already in debt and have to file for bankruptcy. Uxin adjusted its own business model, and after breaking off its core assets, it attempted to build its own inventory to survive. Some people say that after the transformation, Guazi has become “Taobao”, and Uxin conducts offline transactions through self-built inventory, which is like “JD self-operated”, betting on the To C national purchasing business. Dai Kun said that Uxin is on a “correct” but “unhappy” path. Even internationally, this road will not be too fast. Carmax, the world’s leading second-hand car brand, has gone for 20 years, and Carvana has gone for 9 years. From another perspective, China’s second-hand car transaction and car source distribution have strong geographical attributes and characteristics. The price difference of second-hand cars formed by cross-regional circulation is now significantly weakening. In fact, the geographical characteristics of second-hand car transactions are more obvious. “A second-hand car dealer needs to establish a standardized distribution system for networked operations. In terms of operational logic, second-hand cars are non-standard products and have a long service chain. CarMax of the United States has established a standardized distribution system through cooperation with auction companies. System. Although some people copy in China, there is no good integration point. As a market pioneer, Uxin hopes that they can truly pass the model.” A second-hand car industry person told AI Finance and Economics. Do second-hand car transactions need an e-commerce platform? In April this year, Uxin opened the country’s first second-hand car superstore in Xi’an. The store is linked with Uxin’s online mall to carry functions such as warehousing, inspection, maintenance, and store display. The hypermarket covers an area of ​​24,000 square meters and can accommodate 1,000 vehicles, providing one-stop car purchase services for local consumers. “It turned out that Uxin acted as a B2C lead intermediary. After all, the vehicle is in the hands of others, and there is no way to provide consumers with promises and guarantees. The business is doing well, which is reflected in the various aspects of brand guarantee, acquisition control, testing and after-sales service.” Huang Peiwen, CMO of Xinche Zhilian, told AI Finance and Economics. In this way, the size of Uxin is equivalent to more than a dozen large cars. Quotient. “Now it’s common for large car dealers across the country to earn several hundred million yuan a year. The average price of a car is 200,000 yuan, and the gross profit is about 6%. Coupled with finance, a car can earn more than 10%. With a turnover of 15-30 days and inventory of 500 cars, you can earn more than 10 million yuan a month. In addition to offline inventory, Uxin also has car sources in online shopping malls. Generally speaking, it is at least profitable. “Huang Peiwen said. Of course, some people in the industry believe that this estimation method is too idealistic. “The industry is concerned about the transparency of used car information. Although adjustments and changes have been made under the attention and efforts of all parties, the structure of second-hand car transactions that are mainly dealers and the platform as a service organization has not changed. On the one hand, I haven’t seen a breakthrough change. In addition, I think the conditions are not mature enough to support a large car dealer to do the nation’s second-hand car distribution business.” The above-mentioned industry sources told AI Finance and Economics. For consumers, auto e-commerce still has not been able to resolve industry pain points such as information asymmetry, opaque vehicle conditions, complex transaction processes, and uneven after-sales guarantees in traditional transactions. On many complaint platforms, Uxin has been complained by consumers many times because of the many kinds of “financial loans”, “the loan cannot be transferred after the loan is repaid”, and the vehicle information has been modified. “All second-hand car platforms have not solved the pain points of the industry. Uxin advertises that it saves car prices and enjoys the reserve price, but the reserve price has been no standard for many years.” The above-mentioned investor said. Due to the scattered and fragmented nature of second-hand car sources, the domestic second-hand car market prices are usually in the hands of 40,000 second-hand car dealers. Guazi tried to grab the pricing power, but it was not recognized by the market. If you want to use the big car dealers to call the wind and rain, and combine their own advantages to expand the scale, you need to avoid and control the phenomenon of personnel, vehicle sources, and information running and dripping. However, the capital and management problems behind this are also very complicated. Second-hand car platforms have repeatedly failed, mainly because consumers have not formed brand recognition for second-hand car consumption. Moreover, the cost of bringing new used cars is too high. As a commodity with heavy assets and offline, the replacement cycle of automobiles is at least 3-5 years. As far as the platform is concerned, it is necessary to continuously smash advertisements to attract customers. The cost of bringing new customers to each customer is terribly high. This is enough to prove that the flow of vertical low-frequency used car platforms is an eternal pain. The above-mentioned investors even judged that no platform in the used car industry is an opponent of used car dealers. “The industry experience accumulated over the years is the moat of car dealers. The platform cannot be learned even if you spend money. The so-called hundreds of professional inspection procedures can be standardized, but in fact it is just a process. Even if the used car platform is full The annihilation of the army will not affect transactions in the second-hand car market.” This article was originally produced by AI Finance and Economics, an account of “Finance World” Weekly. Please do not reprint it on any channel or platform without permission. Offenders must be investigated.

Assets in Dubai Scholz can buy data on tax fraud

Status: 11.06.2021 5:57 p.m.

Finance Minister Scholz has initiated an explosive deal. An anonymous informant obtained data on thousands of Germans who own assets in Dubai. It is about uncovering tax fraud, said Scholz. Federal Finance Minister Olaf Scholz wants to intensify the fight against tax fraud. “At my instigation, the Federal Central Tax Office procured a CD containing tax-relevant data from the Emirate of Dubai,” he said in Berlin. These data would soon be evaluated by the federal states. It is about uncovering possible crimes such as tax fraud. “Tax evasion is not a trivial offense, but a criminal act.”

Exclusive 08/12/2020

Assets hidden from the tax authorities?

The “Spiegel” had first reported on the process. An anonymous informant offered the data. The purchase cost the Federal Central Tax Office around two million euros. According to the magazine, millions of taxpayers are said to be affected, including several thousand Germans who, among other things, have land and real estate in the Gulf emirate. The data provided insights into assets that were hidden from the tax authorities in Dubai, according to the ministry report. In addition to clearing up criminal offenses, the data also ensured that the tax authorities would have full access to cross-border transactions. This would avoid loss of income.

07/12/2019

Handover to the federal states next week

After the secret handover of the material, the data is now, according to the “Spiegel” report, at the Federal Central Tax Office in Bonn. Next week they should be sent to the tax authorities of the federal states so that they can examine aspects of criminal tax law and, if necessary, initiate investigations. So far, only federal states had bought tax data. The then North Rhine-Westphalian finance minister and today’s SPD leader Norbert Walter-Borjans bought several tax data CDs. He was NRW Minister of Finance from 2010 to 2017.

The equity that was purchased at the time of 3.4 billion yuan has now been transferred at a price of 900 million yuan. “Thor” Tianshen Entertainment (002354.SZ) has once again sparked controversy.

On the evening of June 14th, Tianshen Entertainment announced that in order to optimize the company’s asset structure and business layout, reduce the company’s operational risks, and improve the company’s future profitability, the company plans to transfer its holdings of Beijing Fantasy Joy Tour at a total consideration of approximately 903 million yuan. Network Technology Co., Ltd. (hereinafter referred to as “Fantasy Yueyou”) 93.5417% equity.

The 93.5417% equity of Fantasy Yueyou was acquired by Tianshen Entertainment in 2016. At that time, it cost about 3.417 billion yuan, which also means that the transfer of the underlying assets was a 2.643% discount.

As soon as the news came out, the netizens of the stock bar had a lot of discussions. Some netizens said that “it was bought for 3.4 billion a few years ago, and now 900 million is sold.” Some netizens said, “The subsidiary has sold 900 million, and the company should have the money to repay its debt.” The latest data shows that as of March 31, the number of A-share shareholders of Tianshen Entertainment was 26,700.

On the 15th, Tianshen Entertainment’s share price rose once, but then turned and fell. As of the close, it fell 1.84% to 3.74 yuan per share.The stock price fell more than 85% from the highest point of 25.85 yuan in 2017, and the current total market is about 6.2 billion yuan.

A company bought for 3.4 billion yuan

Now sold for 900 million yuan

In 2016, Tianshen Entertainment disclosed that it intends to acquire 93.5417% of the equity of Fantasy Yueyou and 96.36% of Herun Media through the issuance of shares and payment of cash. The transaction price of 93.5417% of the equity of Fantasy Yueyou is 3.417 billion yuan and Herun Media is 96.36 yuan. The transaction price of% equity is 742 million yuan.

It is understood that Fantasy Joy Tour is a company whose main business is the overseas distribution of online games and mobile precision advertising. Since its establishment, Fantasy Travel has focused on markets in the Middle East, South America, and Europe. It has achieved remarkable results in the field of overseas game publishing with differentiation as a path. As of June 30, 2016, Fantasy Travel has represented a total of 45 web games. And mobile online games.

For the purpose of the above acquisition, Tianshen Entertainment has also stated that after the completion of this acquisition, the company’s business map will be more complete, and there will be sufficient synergy and support between the business segments. The two major targets of this acquisition can be used simultaneously. The three major sections of listed companies’ online games, advertising media and film and television content will simultaneously carry out multiple reinforcements to create a pan-entertainment industry aggregation platform of “film and television + games + advertising”.

However, things went counterproductive. After the completion of the merger, Fantasy Yueyou repeatedly failed to fulfill its performance promises. Take 2018 as an example.Fantasy Joy Tour achieved net profit of 141 million yuan after deduction of non-profits in 2018, and the difference from the performance promise was 265 million yuan, and the completion rate was 34.7%.

According to Tianshen Entertainment, as a pure overseas game publisher, Fantastical Yueyou has continued to increase in game acquisition costs and promotion expenses in recent years, and its profit margin has been severely squeezed, and its operating performance has continued to decline. It will be even more severe in 2019 and 2020. With continuous losses, it is expected that there will be greater uncertainty in future performance. After this transaction, the company no longer holds the equity of Fantasy Yueyou, and Fantasy Yueyou is no longer included in the scope of the company’s consolidated statements.This transaction is expected to generate revenue of approximately 130 million yuan.

Tianshen Entertainment’s announcement shows that the takeover party this time is Hainan Feichi Trinidad Technology Partnership (Limited Partnership) and Creation Network Limited (HK). Both counterparties were established for less than one year, and their actual controllers are all natural person Li Jiaxuan.

“Thor” came back to life

In February 2010, Tianshen Entertainment was listed on the Shenzhen Stock Exchange. After a major asset reorganization, its main business was changed to e-sports games in 2014. Data traffic is another main business.

What is still fresh in the public’s memory is that in 2015, Zhu Ye, the founder and major shareholder of Tianshen Entertainment, spent US$2.34 million (approximately 15 million yuan) for dinner with Buffett.

As the business continues to expand, Tianshen Entertainment’s revenue also continues to expand.

From 2015 to 2017, Tianshen Entertainment’s operating income reached 941 million, 1.675 billion, and 3.101 billion yuan, respectively, and net profits attributable to the parent reached 362 million, 547 million, and 1.02 billion yuan, respectively.

In 2018, Tianshen Entertainment initiated more than 10 mergers and acquisitions, with a purchase amount of nearly 10 billion yuan. However, the return of expansion has not yet appeared, and Tianshen Entertainment has ushered in a loss of nearly 8.3 billion for two consecutive years.

From 2018 to 2019, Tianshen Entertainment’s revenue was 2.599 billion yuan and 1.335 billion yuan; the net profit attributable to shareholders of listed companies was -7151 billion yuan and 1.198 billion yuan. Tianshen Entertainment was once called “Thunder God” by shareholders.

Regarding the loss, Tianshen Entertainment explained that due to the excessive expansion of the previous period, the resulting debt scale has increased sharply. In 2018, affected by regulatory policy adjustments such as the freezing of the game industry’s version number, total volume control, etc., as well as the regulation of taxation in the film and television industry, restrictions on specific themes, and governance of artist salaries, the company’s operating performance fell sharply, causing a chain reaction and falling into serious debt Crisis and business crisis.

In August 2019, Tianshen Entertainment received an investigation by the China Securities Regulatory Commission, and together with Zhu Ye received a warning letter from the Dalian Securities Regulatory Bureau. The warning letter revealed the problems of Tianshen Entertainment and Zhu Ye in terms of capital occupation, related transactions, and letter disclosure.

In August of the same year, Tianshen Entertainment began to save the crisis. From the previous announcements issued by Tianshen Entertainment, it can be seen that the change first occurred internally. Chairman Yang Kai resigned and introduced a new management.

Then comes debt restructuring. April 2020*ST Tianyu submitted a reorganization application, and on December 9th of the same year, the reorganization was completed.

On the evening of May 21, 2021, Tianshen Entertainment announced that the stocks will withdraw the delisting risk warning from May 25, 2021 (Tuesday), and the stock abbreviation will be changed from “*ST Tianyu” to “Tianshen Entertainment”; the stock code is not Change, still “002354”.

The announcement also showed that in 2020, Dahua Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. After auditing,The company’s operating income in 2020 is 996 million yuan, and the net profit attributable to shareholders of listed companies is 153 million yuan.The net assets attributable to shareholders of listed companies are 2.78 billion yuan.

(The content of this article is for reference only, not as an investment basis. Investors operate accordingly at their own risk.)

Edit| He Xiaotao Du Hengfeng Hu Ling Wang Jiaqi

Proofreading| Lu Xiangyong

The cover picture is self-photographed, and the picture and text are irrelevant

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Daily economic news

Mr. Wang holds an 11% stake in China’s largest food delivery group. Meituan’s share price has fallen since last month when the State Administration of Market Regulations of China (SAMR) announced it was opening an investigation into Meituan for anticompetitive practices. Meituan stock price received a new shock on May 10 when CEO Wang posted on social media a poem Tang about the phenomenon of book burning in the Qin Dynasty. Many people think this is Mr. Wang’s way of criticizing the Chinese government for its campaign to tighten control of Internet corporations. Meituan’s stock price plummeted because CEO Wang Xing posted the ancient poem online. Photo: Xinhua. Billionaire Wang deleted the post shortly after, explaining that he used the poem to criticize Meituan’s competitors. However, it was all too late. The hashtag #MeituanSharePriceSlump (Meituan stock price plummeted) attracted 32 million followers on the social networking platform Weibo. At the same time, the Shanghai Consumer Council also heavily criticized Meituan for inappropriate business practices. Recently, the Chinese technology industry has been struggling because of the repressive measures of the Beijing government. The Hang Seng Technology Index is down about 30% from February. “The Chinese tech industry is going through a lot of ups and downs. Technology regulations are constantly being applied, leading to regulatory risks, making it difficult to forecast industry growth,” said Jackson Wong, head of asset management at Amber Hill Capital.

Illustration. According to Hai Duong Police, recently, many mobile subscribers have received messages impersonating financial institutions and banks, sending fake and fraudulent content in order to appropriate people’s money. Through verification and evaluation, the authorities found that these fake messages did not come from the systems of financial institutions, banks and telecommunications businesses, but were distributed through transmitters. fake mobile signal. These are devices of foreign origin, which are illegally traded and used by objects for the purpose of carrying out attacks to spread spam messages to deceive users, especially users in remote areas. urban area. Fraudsters often use fake broadcast devices to send spam messages directly to the phone without going through the mobile telecommunications network. These messages are sent by objects that change source information in order to create trust and deceive users. The message content is often advertising, instructions or contains links to fake websites like official websites of financial institutions, banks to lure and steal users’ information such as accounts, password, OTP code. Many users do not recognize the fake website, so they provide personal information to access the bank account such as entering the account name and password. After the user provides the information, the fake website will redirect to another website or notify the user to wait. The subject uses the user’s personal information to log in to the official website of financial institutions and banks to get the OTP authentication code (if necessary).

Illustration On the contrary, if set the mirror wrong position will cause many annoyances and disadvantages. Therefore, Feng Shui expert Phung Phuong has pointed out 9 ways to attract wealth to homeowners. 1. Mirror and house should be proportional to each other. Hanging a mirror indoors should be enough for the person looking in the mirror to see the head. If the mirror is long, it is best to see the whole body. 2. Placing a mirror in the living room easily distracts people. 3. The mirror must not face the window. If there is another house outside the window, it will be a disadvantage for me. Moreover, if there are lights outside or direct sunlight, it will be detrimental to health. 4. Mirrors must not face the bed. When sleeping is the time when people relax and relax, so at midnight, waking up and seeing the shadow in the mirror will startle themselves, leading to the loss of raw spirit. 5. The mirror faces must not be hung facing each other. Because this will make the air flow confused and unable to circulate. 6. After the sofa should not put the mirror because when sitting, the mirror will shine directly on the back of the head, causing a negative effect. 7. Under normal circumstances, the mirror is not allowed to shine directly on any door, as this easily leads to vision and illness. If you hang the mirror facing the main door, you will increase the chance of reflecting the indoor equipment out. 8. In the toilet, it is recommended to hang a large mirror, which can both reflect impurities out, and expand the viewing space. 9. In particular, hanging a mirror of the Tiger of Eight monsters at the main door bearing will have the effect of securing and securing a family very effectively. On the right day and time to be calm and peaceful, the hanging of the Ho Phu mirror at the main door has even more powerful effect, helping to protect the homeowner from the negative air rushing directly from outside into the house.

Entering showbiz quite early, at the age of 16, Minh Hang was famous in the entertainment industry as a versatile star. As an actress, she also works as a singer, the face of the brand and her own business. That’s why, now, she has become a famous giant in the showbiz world. Villa royal style of Minh Hang Minh Hang owns a million dollar villa located in District 2 of Saigon, the most prominent property of actress Minh Hang. This monumental mansion exudes elegance, modernity, glorious and splendid as a palace at first glance. The surrounding campus is also covered with lots of greenery. According to the owner, this property was built on hundreds of square meters of land, designed in the royal style. Minh Hang in the villa Although she does not have a passion for cars, Minh Hang still buys expensive canned cars for convenient transportation. In 2014, the actress born in 1987 spent 6 billion dong to own a luxury Porsche Panamera. Before that, she also bought a Lexus car for about 2.5 billion dong. In 2017, the news of Minh Hang giving a wedding gift to his brother, an apartment worth 2 billion VND, attracted a lot of attention from colleges. Box of Minh Hang Besides, Minh Hang is also a follower of brands. She owns many billion-dollar items from famous brands such as Hermes, Chanel or Dior … In the photo, she impressed with a diamond-studded watch of Frank Muller priced at 1.4 billion VND. In November 2018, the heart-shaped huge diamond ring on Minh Hang’s hand also made fans “wake up” for the wealth of the female artist. She is known to often spend a lot of money on expensive jewelry. In the photo, in addition to the diamond ring, the singer’s bracelet is simple, but it costs up to 200 million VND. She is a brand player in showbiz Quoc Truong: Knowing the estate a few tens of billion, luxury cars can not count Not doing showbiz as much as Minh Hang, but thanks to his own business, Quoc Truong still owns a huge fortune and is one of the richest Vietnamese showbiz artists. Currently, Quoc Truong is the owner of a 700-square-meter villa worth more than 20 billion VND in Can Tho. The family used to live in a village and spent a long time in economic poverty, so the first thing Quoc Truong did when he accumulated money was to build a house for his parents. Quoc Truong family in villa in Can Tho The villa has two fronts, adjacent to a large road, covered with many trees. This work inaugurated in early 2019, is home to the entire family of actors. In front of the porch is a large garden with many trees. Quoc Truong’s family often sits here waiting to cool and receive guests. The actor used to hold a grand party to celebrate his parents’ 40th wedding anniversary right in the garden. The large garden is enough for a party Most recently, Quoc Truong shared a 3D perspective of a 305-square-meter villa about to start construction in Ho Chi Minh City. This is a birthday gift he gave himself but designed according to his parents’ liking. The lot is located near Phu My Hung. Quoc Truong did not disclose the price but said the house after completion will be worth much more than the family’s villa in Can Tho. 300m villa is about to be built in Ho Chi Minh City In addition to real estate, Quoc Truong also owns a Mercedes-Benz S 450 L Luxury worth more than 5 billion VND. He bought this car in August 2019, after the effects of the drama ‘Go home, baby’. Currently, although Minh Hang denies the relationship with Quoc Truong after the clip of the two intimate in the bar is widely shared on social networks, netizens still look forward to another ending for the couple.

Produced | Sohu Think Tank

Edit | Yuan Changyou

Xiao Gang, a member of the National Committee of the Chinese People’s Political Consultative Conference and former chairman of the China Securities Regulatory Commission, recently stated in the “National Wealth Lecture Hall” program that in the future, the proportion of financial assets in residents’ wealth will become higher and higher, and the capital market should become a carrier of wealth appreciation.

Xiao Gang said that in the past we mainly relied on indirect financing and used bank leverage to mobilize savings to support technological innovation and manufacturing investment. However, in the historical stage of building an innovative country, the development of direct financing, especially equity financing, has become an inevitable trend. The next step in the reform of the financial market should focus on expanding the role of direct financing, especially equity financing, in supporting technological innovation and industrial transformation and upgrading.

“Science and technology innovation requires a large scale of investment, a long investment cycle, and high investment risk. Many innovations ultimately fail. In this case, the use of bank credit may put a heavy burden on innovation entities. Bank borrowing is corporate debt and needs to repay the principal and interest, which will inhibit the enthusiasm of innovation entities. Direct financing, especially equity financing, fits the characteristics of innovation well.”

The development of the equity investment market requires reforms in many aspects. First of all, Xiao Gang said that many private equity investment funds currently invest in mid- to late-stage projects, while technological innovation often requires strong support for early-stage projects, which requires more long-term and patient capital. Therefore, it is necessary to introduce more incentive policies to attract capital investment in early-stage, technological projects to promote technological innovation.

Second, he said that the current comprehensive reform of the exchange market has achieved obvious results, but further reforms are needed to expand the proportion of equity financing. For example, the NEEQ has achieved initial results in last year’s reforms. It mainly serves private and innovative small and medium-sized enterprises. The development potential after the reform is worth looking forward to.

Regarding the over-the-counter trading and over-the-counter markets of securities companies, Xiao Gang emphasized that in the past we paid more attention to on-exchange and standardized trading, but in fact, there are over-the-counter markets that need to be standardized. “In the past, there were many problems in the OTC market, such as non-standardization, information asymmetry and opacity, lack of trust mechanisms, etc. However, with the help of financial technology, such as blockchain, big data, artificial intelligence and other technologies, it was combined with OTC transactions. It may make up for the shortcomings in the over-the-counter market in the past.”

Xiao Gang believes that the current share of financial assets in residents’ wealth is still low. With the reform and development of the equity investment market, the proportion of financial assets in the wealth of residents will become higher and higher in the future, and there will be a trend of “financialization of wealth”. Resident assets will no longer consist of real estate, but will have more financial instruments. In the future, the capital market should provide richer products and become a carrier for the appreciation of residents’ wealth, so that investors can obtain more property income.

[Sohu Think Tank: Gather the wisdom of scholars and entrepreneurs to get the pulse of economic trends. If you are interested in contributing or contacting on-site reports, interviews, and program cooperation matters, please send an email to zhikucaijing@sohu.com]

Original title: “Foreseeed from Convergence: DeFi “Broken the Circle” Road to Real World Assets”

Written by: Rilak

Ethereum It brings decentralized transactions, lending and income to anyone connected to the Internet. In the past few years, a decentralized ecosystem with multiple types of digital assets has been realized-with secure tokens (STs) and practical Tokens (UTs) and non-fungible tokens (NFT). UTs are limited to untrustworthy crypto-finance native protocols, while STs attract financial institutions that focus on private equity market innovation, equity crowdfunding, and ownership, while NFTs are linked to fields such as crypto art, games, and voxel 3D.

Now, the vane of these digital assets is changing. The native protocol is opening up exposure to real-world assets such as tokenized stocks; the DeFi protocol is beginning to try the physical assetization of NFT; digital asset exchanges have also lit the green light to seize the share of unicorns in the traditional market.

A trend: the multi-dimensional integration of DeFi and CeFi

DeFi is increasingly embracing real-world assets, such as Convergence, Persistence, Centrifuge , Naos Finance, ShuttleOne, etc. are committed to the bridge connecting DeFi and CeFi, bringing all kinds of real-world income rights assets to the chain, expanding the DeFi world while providing impetus for the innovation of traditional finance.

Taking the innovation of traditional market stock claim as an example, the Convergence platform allows equity to be traded in the form of encapsulated securities tokens. This form of innovation has brought unprecedented advantages in the market:

Under this decentralized equity trading model, individual investors can invest in assets that could not be invested before, such as unicorn company stocks, private funds, and even a small part of real estate projects; at the same time, it solves the problem of investing in private equity The main pain point of trust funds-low liquidity. Data shows that in February 2021, the total monthly transaction volume of all decentralized exchanges has reached a new high since January reached 58 billion U.S. dollars, breaking through 60 billion U.S. dollars. The market urgently needs asset chain agreements to act as a channel to connect liquidity from the DeFi space; in addition, these securities tokens on Convergence are backed by physical assets, and their ownership is legally recognized. This may be essential for some institutional investors.

In addition to Convergence, agreements like Centrifuge focus on rethinking how companies trade with each other. It is a project dedicated to supply chain finance, founded by a group of Silicon Valley entrepreneurial veterans. They have rich experience in the field of payment processing and financial technology, and are currently solving bill processing, the resulting payment delays, and liquidity of funds by liberating data in isolated corporate systems.

There are also many similar agreements that bridge DeFi and CeFi well, bringing various real income rights assets such as corporate credit, supply chain finance, consumer finance, and real estate rental income rights to the chain, greatly expanding DeFi and traditional finance The intersection of the world.

Specific measures for asset chain agreement

Taking the mechanism of physical assets on the chain in the securities tokenization platform Convergence as an example, we can get a glimpse of the whole picture. The information currently available is that its product can be disassembled into four components: ConvO, ConvX, ConvPool and ConvDAO.

ConvO

ConvO will enable asset owners seeking financing (such as shares of large investment institutions) to issue initial packaging security tokens (“WST”). They will set subscription prices for their WST and set up corresponding swap pools. Part of the tokens issued in WST will be reserved for the Convergence protocol to provide liquidity for ConvX. In addition to asset owners, ConvO also issues premium investment assets to CONV holders. In order to ensure the quality of the initial assets of the platform, the asset owner who set up the initial WST product will need to pass the inspection of the Convergence team first and obtain the final approval of ConvDAO before the asset can be listed.

ConvX

ConvX is an automated market-making mechanism (AMM) that allows users to convert between CONV and real-world assets on the Ethereum chain. Convergence will charge a 0.3% fee for each transaction, of which 0.25% will be used to reward liquidity providers, and 0.05% will be used for the effective operation of the agreement.

ConvPool

ConvPool aims to incentivize CONV or CONV-LP holders to put their tokens into the agreement, in other words, to provide liquidity for the ecosystem. In return, the liquidity provider will receive a 0.25% transaction fee from Convergence X. In addition, CONV or CONV-LP holders can mortgage it. In return, CONV rewards based on specific interest rates can be obtained.

ConvDAO

CONV token holders form a decentralized community for governance. They will publish proposals and vote on protocol upgrades. Users who use 2% of CONV in their addresses for voting will be eligible for governance actions.

Market acceptance of such agreements

After receiving the lead investment from Hashed in March and the participation of NGC, GBV, Alameda and other institutions in the multi-million dollar financing, Convergence launched IDO on Polkastarter on March 25. The progress of the projects after IDO has been significantly accelerated, and there is no shortage of giants in various fields. Support from partners.

Convergence first opened up the East Asian market. In terms of community cooperation, it announced on April 7 that it had reached a cooperation agreement with Winkrypto in Greater China. Winkrypto will help Convergence in its domestic brand and media strategy, and increase the participation of the domestic blockchain community in Convergence; on April 12, South Korea’s leading crypto community Ellipti announced a partnership with Convergence. South Korea’s encryption community is a fertile target market, with high-level encryption technology and an experienced user base. The cooperation between the two marks the beginning of its strategic entry into the Korean market.

Most importantly, in terms of traditional asset diversion, many investment institutions have begun to experiment with decentralized platforms. On April 9, Soul Capital announced a partnership with Convergence to find various assets outside the crypto world for Convergence users. Soul Capital is a family VC headquartered in Hong Kong, which has been focusing on investment in innovation and emerging technologies. Its invested companies include some well-known start-ups in the Asia-Pacific region, such as Hong Kong van rental app GoGoVan, 3D video game production agency EPIC Games, and Indonesian e-commerce giant Tokopedia. Through this cooperation, part of the assets in the portfolio of startups invested by Soul Capital can be traded on Convergence in the form of encapsulated securities tokens. Any DeFi user with an accessible wallet may be able to invest a small portion of the equity of those startups, which means that retail investors can use their crypto assets for such investments for the first time. At the same time, this can also be seen as an alternative to traditional exit strategies.

It is worth noting that, unlike other token-based economic platforms, it is not only unicorn stocks that can be traded on Convergence, but also fragmented NFTs (a way of sharing ownership) and tokens that are not listed on exchange projects. Options. Large investment institutions, as small as individuals with ownership, may become the main body of the platform.

This is just the beginning. Teams like Convergence have given us a lot of inspiration. Obviously, the digital asset economy is converging and bringing together traditional financial participants and cryptocurrency investors. The trustlessness agreement is reshaping the pattern of decentralized financial economy through the governance of “code is law”, smart contracts, and token economics. We believe that the integration of traditional finance and DeFi will unlock new synergies and promote financial technology innovation.

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