Chapter 298 In the Name of Xie Jingxing
The Zipeng Mountain is covered with snow. In the early morning, the red sun rises in the east and the cold wave turns into water vapor. The flowing sea of ​​clouds between the mountains is a unique sight.

This was Xie Jingxing's third day in Luzhou. It was near the end of the month and the New Year holiday was approaching, and the city organized an outdoor mountaineering team-building activity for government agencies and public institutions to socialize and socialize.

Most of the attendees were young single men and women, so he naturally had an excuse to say a few words and offer his most sincere blessings.

It must be emphasized that this is very, very sincere!

In addition to the two meals a day, they have to have a midnight snack. One after another, soldiers who have been tested by alcohol take turns to mix red and white wine together. Even his urine smells like wine, which is in no way inferior to the aged iron-capped Maotai.

The body is drunk, but the heart is not. A soft knife is the most hurtful.

Even Marshal Xie, who prided himself on being a man of steel until his death, couldn't stand it anymore and found an excuse to stay out of the spotlight and catch his breath. Director Yang couldn't chase after the young men and arrest him.

After the outdoor activities ended at noon, we returned to a resort hotel in the mountains. The buffet piled on the plate finally soothed our stomachs that had been abused by alcohol for days.

"Another bowl of soup to drive away the cold. I had a stomach full of wind this morning and it would be hard to digest if I ate too much."

Xie Jingxing was burping contentedly when Xiang Yuan appeared from somewhere with two bowls of seaweed egg drop soup, looking like a real secret agent.

He looked at him briefly and said jokingly, "Mr. Xiang is single too?"

"The children are all in primary school. Young people in our unit are reluctant to come here. They can't escape the drudgery of being supervisors every time." Xiang Yuan took off his glasses and sipped the hot soup.

Xie Jing Xing was confused: "Isn't this activity good? Eating, drinking and having fun doesn't take up time after get off work. It's like a day of paid leave."

"Hey, the ratio of men to women is unbalanced, so we're just trying to make up the numbers."

Xiang Yuan gave a vague explanation that all young men of marriageable age in their unit who had not obtained a marriage certificate had to come. It was not worth it to take paid leave during the day and then have a girlfriend making trouble at night.

"That's right. The young men in your company are all high-quality stocks in the marriage market. There's no need for them to come here." Xie Jingxing was distracted.

Even if he cared enough about basic research, the most he knew was that Luzhou had launched a high-intensity talent introduction program around the University of Science and Technology of China, covering household registration, housing, cash, and all industries and fields.

The treatment of talents in the Municipal Investment Industry Guidance Fund and the semiconductor industry is very good, but the natural conditions cannot compare with those in first-tier cities. This kind of environment is the basis for building industrial clusters.

Xie Jingxing was drunk all day but he was not idle. He had a pretty good understanding of the basic situation in all aspects, so in his opinion, it made sense that there were more men than women in blind dating activities.

Xiang Yuan knew his own business and was too embarrassed to reveal the truth. It is true that Luzhou has put a lot of effort into attracting talent, but being able to attract talent does not mean being able to retain it.

On one hand, there is a technology manufacturing giant like BOE, and on the other hand, there is the JAC Telemarketing Center, which is in close contact with Chengdu. Both high-level engineering research talents and low-level laborers are welcome here. The only thing missing is a social enterprise like Alibaba in Hangzhou that can lead and drive the entire industry and offer one of the best salaries.

Many people come here for the talent introduction policy, but end up being discouraged by jobs that do not match their actual value. They seem to be high-paid talents and social elites.

In fact, in the marriage market, one of the channels that is best at screening "talents", the result that there are more women than men is to some extent very telling.

"In an environment where we are vigorously attracting talents, if we want to build industrial clusters, the guidance fund should focus on investing in small and beautiful projects in the early stage, maximize the use of local policy support resources, and initially form an industrial environment."

Xie Jingxing sorted out his thoughts based on his own assumptions: "In this way, the problem of capital accumulation at the level of guiding fund operations can be solved. Direct investment business requires a specialized team."

"In fact, if possible, investing along the upstream and downstream industrial chains will make it easier to form an industrial park."

This was the first time the two sides had talked about serious matters in a few days. Xiang Yuan's eyes immediately lit up and he perked up, and couldn't help but throw out a big chip.

Xie Jingxing's idea turned out to be quite beneficial for attracting and retaining talents. Small and beautiful projects will accumulate professional standards in subdivided industry fields, and the salary and benefits will be more flexible. There is a difference between being insecure and having unlimited prospects.

However, at the level of industrial guidance funds, this investment method means dispersion and investment in projects that are good. In short, it is difficult to achieve the purpose of "industrial guidance."

For example, in the chip industry, from design to packaging, testing and production of commercial terminals, it is definitely better to focus on investing in upstream chip design, create a cluster effect, and then focus on investing in packaging, testing, production, and commercial terminals, rather than trying to do it in a haphazard manner.

Xie Jingxing drank heavily and was able to find opportunities to do so. Naturally, the people of Luzhou City, who were united in their purpose, were not idle either.

The preliminary plan currently under discussion is that the municipal investment company will provide the money and the development zone will provide a piece of land to build a chip industrial park. The two parties will work together to match the 400 billion investment amount of the rich man Xie.

Based on this, it makes sense to focus on investing in the chip design field first.

"Industrial parks... I actually think this should be considered as an independent auxiliary policy support for local investment attraction. From the perspective of the guidance fund itself, park real estate will increase our capital operating costs."

Xie Jingxing held on to the issue of 'funds deposit' and refused to let go. He had mentioned this several times before and after.

Xiang Yuanxi was a little worried, and he emphasized carefully: "Mr. Xie, our Luzhou launched the "Semiconductor Industry Development Plan" two years ago. In the corresponding investment practice process, is the problem of capital accumulation still within the controllable range?"

He asked with a hint of doubt in his tone, and Xie Jingxing didn't know how to answer for a moment.

Luzhou has great ambition and vision, and it started to plan its semiconductor industry one year ahead of the national strategic level, making it the only local city in China to do so.

Putting aside the false praise, their municipal investment company has certain experience in investing in the semiconductor industry, which is the fundamental reason why he came to Luzhou as his first stop.

"Because the investors of your fund pay more attention to policy guidance, if you want to attract more social capital, this problem cannot be controlled." Xie Jingxing could only say this.

Xiang Yuan couldn't help but frowned and fell into deep thought. Conventional government-guided funds are funded by the government to establish a parent fund, and then the parent fund cooperates with social capital to invest in the creation of a sub-fund, which then invests in specific projects. The financial leverage risks of this set of gameplay are gradually accumulating.

First, the government invests to establish a mother fund, and only a small part of it is paid out of pocket. Most of it is participated by local state-owned enterprises, municipal investment companies and other units. This is the first layer of leverage.

At the sub-fund level, the parent fund only contributes 10%-30% of the funds, and the rest is all raised from social capital in the market.

Due to various policy-driven demands of the parent fund, the overall return on investment is low and fundraising is difficult, so the parent fund has to use a guarantee clause to increase its attractiveness to social capital.

Using local finances and land as collateral, any losses are ours and any gains are yours. This is the second layer of leverage.

This way of playing seems to be an investment but in fact it is debt. But that’s not all. There is a third layer of leverage - because of various policy-driven demands of the parent fund, the invested companies are unwilling to accept the investment.

The parent fund promises the invested enterprises that after the valuations of the financing fund and the invested projects have increased accordingly, it will use the increased valuation as a guarantee to attract third-party capital such as banks, financial insurance and trusts to raise funds, thereby providing the invested enterprises with invisible policy and financial support.

The accumulation of layers of leverage and the laying of landmines at the local level need not be mentioned, reflecting the extremely high investment risks in the operation of the guidance fund.

"What are the specific methods for early exit of your guidance fund's current investment in sub-funds? Tell me about it. I'm not trying to trick you." Xie Jingxing asked from a different angle.

Xiang Yuan pondered and introduced: "If our parent fund exits within four years, we will not take any interest, but only the investment principal. If it exceeds four years, we will be paid income according to the market lending rate every year."

“So you see, it goes against the laws of the market economy.”

Xie Jingxing spread his hands: "The funds of your top-level mother fund are leveraged. There is no way to make long-term investments and passively pursue short-term exits. If the conditions of the sub-funds allow, you will not make a penny of profit if you exit early. How do you solve the leverage cost of the funds?"

"This is still good. If the conditions of the sub-funds really do not allow early exit, how do you solve the leverage cycle risk of your top-level parent funds?"

He continued in a helpless voice: "There are also those who like to use the guarantee agreement to attract social capital. How do you calculate the leverage risk cost of this layer?"

Xiang Yuan understood and was speechless. How can it be solved? The policy guidance effect of the industry is achieved, and the losses and risks are borne. Although sometimes the industrial guidance effect may not be achieved, the losses and risks must be borne.

And now that Luzhou wants to discuss the 400 billion fund with Xie Jingxing, Xiyou has to invest a full billion for the parent fund. From any angle, he has no reason to accompany Luzhou to bear the risks and losses.

But he could not interfere with how Luzhou's 400 billion yuan investment in the same proportion came from, and he had to bear the risk of Luzhou using various levers to take out the 400 billion yuan.

"Today, it's just the two of us. Mr. Xiang, can you tell me the bottom line? What is your highest bottom line for the exit cycle of sub-fund participation and parent fund direct investment?" Xie Jingxing asked again.

Xiang Yuan was hesitant and couldn't say this.

"Don't play Tai Chi. I'll give you a price. If you don't tell me, I'll leave right away!" Xie Jingxing frowned.

Xiang Yuan secretly cursed himself for being so humiliating today. If the negotiation failed because of him, Director Yang would probably crush him to death.

The cerebellum and heels spun rapidly, and he said with his eyes squinting, "Well, I think your paper is a good way to say it. Since we in Luzhou are interested in discussing cooperation with you, we will definitely respect the laws of the market economy to the greatest extent possible."

“7 years + 50% return on investment?”

“6 years + 25% return on investment?”

“5 years + 11% return on investment?”

Xie Jingxing listed three stages of withdrawal conditions in succession, but Xiang Yuan remained silent.

Sometimes not giving a direct answer is the answer. He relaxed his expression and smiled: "Quality projects are limited, and quality social capital is also limited."

"Since I started working in this industry, only Grapefruit Capital has provided investors with a minimum bet guarantee clause in its first round of fundraising. It is not my style to beg and coax investors."

Xie Jing Xing paused, "It's not my style to foolishly invest in those junk projects. I often beg and coax high-quality projects to be invested in."

"So there is only one solution. It is better to open up than to block. Use the most beautiful investment return curve to cover your capital leverage costs. Raise social funds in a normal market-oriented way. Anyone who asks for a bottom-line clause should get out. My name is here as a bottom-line clause!"

He raised a finger and shook it, speaking in a frivolous tone.

your name?

In the name of Xie Jingxing...it seems like it might actually work.

Those who fail to achieve it are pretenders, and those who achieve it are awesome. In Xiang Yuan's eyes, the favored child in front of him belongs to the latter. Anyway, if he had spare money for venture capital, he would only consider Sequoia and Grapefruit in China.

In this way, Luzhou's two layers of leverage for the parent fund and the sub-fund can be dismantled and eased, and maybe it can really make some good money.

On the contrary, the price to pay for this is a significant reduction in the government's dominance in "industry guidance."

As long as they do not leave the semiconductor industry, Xie Jingxing can invest in any project he wants. This is what he has been pursuing from the beginning to the end in "On the Market-oriented Construction of Government-guided Funds".

(End of this chapter)