(Chinese Version)

Near the end of 2015, the conflict between Vanke’s leading board and Baoneng Group over Vanke Group’s stocks brought forth the concept “Barbarians at the Gate”. In a narrow sense, Baoneng Group is regarded by Vanke’s leading board as “the barbarians”; in a broader sense, however, “barbarians”are those who can raise huge sum of money in short time, just like Baoneng Group.

Vanke’s stocks were one of the first five stocks that listed on the Shenzhen Stock Market in December, 1990. At that time, the total value of these five stocks could be less than that of a mid-sized listed companies today. So Vanke Group has never expected that some investor could raise 20 billion RMB in a short time.

In 2014, the then president Yu Liang initiated a reform over the business partner system, and has already started to adjust the original system. However, it is a pity that he didn’t seize the opportunity and make any radical changes.

Nowadays, the global capital fluid has become a very important variable to world economy. You might see an increasing number of “unicorns” these months, yet they are burgeoning not because their founders become stronger, but because they received much more financial support from venture capital firms. In the past, a company has to launch an IPO and share its profits with the public to raise enough funds for future development; today, however, a company can develop solely based on the support from venture capitals and launch an IPO when they are already quite developed and wealthy.This is exactly the reason why unicorns prevail in the Chinese Internet industry right now.

With the rise of Internet finance and venture capital, it will become much easier to raise financing, which could have huge impact on the Chinese capital market. It is to be expected that more unicorns will come into existences and more ambitious investment will be come into play.

For entrepreneurs, enemies who are out the sight are commonly the most dangerous ones, because they have to face an unknown enemy totally unprepared and get ready to face any challenge any time. Besides the huge sum of capital, transformative technologies and the digitalization of traditional assets will also be two of the most significant variables in 2016. In addition, with the successful reclamation of SpaceX, aerospace industry can also be a hot-spot area. Other transformative technologies, such as quantum computing, virtual reality, artificial intelligence, biological technology, new energy technologies can also change the entire industry if they can be put into mass-manufacture.

At present, the burgeoning Chinese O2O industry is quickly digitalizing traditional industries such as logistics and offline retailing industry. These new data will certainly usher a new wave of commercial innovation.

Since the second half of 2015, we have witnessed a trend towards hedging movement, such as oligarchization, bubbling, offline capitalization and online mobilization. As Kevin Kelly once said, “this might be the result of the countermeasures of the business industry in face of huge changes.”

At last, I wish you a very happy new year.

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[The article is published and edited with authorization from the author @Liu Xiangming, please note source and hyperlink when reproduce.]

Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.