Sun Mingchen Of Hong Fund: Focusing On Alternative Investment And Overtaking In Emerging Market Segments

"Xiong Xiaoge, Shen NANPENG and others are a group of senior investors whom I respected very much when I was a student. They are the pioneering generation, and we are the generation that connects the past with the future. " Recently, sun Mingchen, founder partner and CEO of Hong fund, said in an exclusive interview with the 21st century economic report.

In his opinion, the development of China's private equity industry for more than 20 years is inseparable from the old generation of investors. While striving hard, they have also caught up with the international situation dividend and the domestic market development dividend under the general environment.

For today's young investors, the dividends and opportunities may not be that big. However, there is still room and opportunity for alternative investment, especially in domestic emerging market segments such as real estate funds. Based on this judgment, sun Mingchen, born in 1986, founded Hong foundation when he was less than 30 years old. After more than five years of operation, Hong fund is gradually gaining more market recognition.

Sun Mingchen. Information map

Find your own opportunities in emerging markets

Sun Mingchen graduated from ICMA centre, reading, UK, with a master of Science Degree in investment management. "In the UK at that time, I systematically studied professional courses in financial engineering, financial derivatives, hedge funds, etc., and now my investment strategy is also deeply affected by it." He recalled.

After returning to China in 2011, sun Mingchen, who was born as an investment professional, joined China Switzerland capital to do industrial investment and industrial investment. At that time, sun Mingchen experienced the boom of the PE era, and had a preliminary understanding of China's private equity investment market.

"In the early stage, although I participated in some successful cases, the investment in enterprises was still different from the concept of professional financial institutions. At that time, I wanted to go to professional financial institutions to experience again." Sun Mingchen said. That was in 2013, when the mobile internet field was just emerging. Many practitioners chose to join VC / PE companies to invest in TMT, but sun Mingchen chose to join the head real estate fund company Dingxin Great Wall.

He explained to reporters that on the one hand, his professional background is not TMT technology, but in the field of investment. He has systematically studied the investment in financial products such as bonds, stocks, real estate and block trading, so he has a stronger professional advantage in real estate fund investment with stronger financial attributes.

On the other hand, senior investors of VC / PE institutions such as IDG and Sequoia have accumulated a lot of advantages and resources in TMT investment. Relatively speaking, real estate investment in China is an emerging market, and 2013 is also known as "the first year of real estate fund". For young investors, it is easier to find their own opportunities in the new market.

As a result, sun Mingchen was in charge of investment management affairs in Dingxin great wall and accumulated systematic cognition and operation experience of real estate funds. In the course of his work, sun Mingchen found that the mature real estate market in Europe and America has formed a complete system of incremental market, stock market and securitization market. In China's market, most of them are the traditional real estate development mode of incremental market, and a large number of domestic real estate funds also carry out investment and financing layout around this, and seldom participate in the transaction of the latter two.

However, sun Mingchen believes that the stock market and asset securitization market are the new directions that the real estate market will inevitably rise in the future. Based on this determination and interest in emerging markets, he started to set up Hong fund in 2014, mainly focusing on the real estate stock market and asset securitization market.

Insist on doing the hard and right things

"Hong fund has been sticking to its original intention and focusing on value creation in the field of real estate investment. Four or five years later, many market institutions began to turn to urban renewal and began to pay attention to the value of this aspect. We firmly believe that in the mature real estate market, increment, stock and securitization coexist. The era of emerging stock market and asset securitization will come, and this trend will be more obvious in the future. " He said.

It is understood that Hong fund has completed more than 5 billion yuan of investment and asset management since its formal establishment in early 2015. The projects invested and operated by the fund include the "contemporary world mansion mom Λ" project located in Minhang District of Shanghai, the high-rise area property project of China Merchants Building in Chaoyang District of Beijing, and the office property project in Melbourne, Australia.

Because there are few domestic institutions that invest in real estate equity and stick to the operation value, sun Mingchen often meets with fund managers of top international institutions in the process of project transaction negotiation, and they even have more than 30 years' experience in the industry. How can sun Mingchen, as a young younger generation, gain respect and trust and safeguard the interests of investors as much as possible in front of the "old lake"?

"Indeed, many investors sitting opposite the negotiation table were already famous experts in the industry when I was a student. I respect my predecessors, but it does not mean compromise in business negotiations. In trade negotiation, the principle of reciprocity is the basic principle. When you choose to make concessions, you will often face unlimited concessions. Therefore, it is better to judge the real motives of the counterparties based on the fundamental analysis and seek the best fit between the two sides. " Sun Mingchen said. In the process of transaction, all rights and obligations need equality and mutual benefit. Self respect can win the respect of others.

At the same time, the real estate market is the market of professional institutions, and heroes are not judged by their origin. If the team is professional enough in the knowledge framework, control of benchmarking, risk identification, value judgment and other aspects in the negotiation process, it can convince the counterparties and win respect.