【Summit Top Interview】Shared Economy: The New Vitality for Tourism Industry Growth Interview with Li Weiqun, Secretary-General of China Association of Private Equity

The China Association of Private Equity (CAPE) and the World Tourism City Federation (WTCF) have planned to jointly launch an investment subcommittee which bears great significance to the development of China’s economy and tourism industry in particular.The Bi-monthly World Tourism Cities interviewed Li Weiqun, Secretary-General of CAPE, on the issues of tourism investment, urban development and shared economy.

WTCF: What strengths of WTCF attracted CAPE so that it joined WTCF? Against the backdrop of the tourism industry becoming a center of global attention, what role do you expect WTCF to play?

Li Weiqun: WTCF is a large international platform that brings together major tourist citiesand excellent tourist-related institutions around the world, showing the pursuit for happiness and harmony of this rising international organization. This is in accord with the philosophy that CAPE has always insisted, that is, internationalization and industry-focused investment. We sincerely hope that more and more equity investment institutions will be aware of the huge potential and great investment opportunities of the tourism industry, use capital impetus and injection of experiences and resources to improve the vitality, market competitiveness, profitability, social service capacity of the tourism industry, support and facilitate the industry to manufacture more and better products and provide more and better services.

As the tourism industry has become a center of global attention, WTCF should further expand the scope of memberships, boost communication and cooperation, and allow major tourist cities and companies in tourism related industries to play their role as both a bridge and platform.

WTCF: Could you brief us on the basics of CAPE, its majorfunction and the projects to be started soon?

Li Weiqun: CAPE is a voluntary union and non-profit organization jointly established by private equity industry players. It provides service to all types of funds and management agencies registered in the country. It is committed to building the industry self-regulatory mechanism, safeguarding the legitimate rights and interests of members and improving their professional qualities, strengthening cooperation and exchanges between members and equity investment funds at home and abroad, and promoting the healthy development of China's equity investment fund industry.

Based in Beijing, CAPE serves the whole country with a world vision. It adheres to its development principle of “market-orientation, globalization, standardization,” and actively advocates operational guidelines of “regulated fund-raising, value investing, scientific management and multiple exit.” CAPE took the lead in launching the Global Private Equity Alliance (GPEA) in 2010,the Asia Venture Capital and Private Equity Council (AVCPEC) in 2011, and has established a good partnership with equity investment industry associations and institutions in major countries and regions. Every year, CAPE organizes the annual GPEA Beijing Forum, Global M&A Forum, Global venture Forum and over one hundred other sessions of international and domestic exchange and training activities.CAPE has also set up offices in Silicon Valley of the US, London in the UK, Frankfurt of Germany, Paris of France, Tel Aviv of Israel and Zurich of Switzerland. It helps Chinese enterprises to go global, providing them with information exchange and project landing of equity investment, mergers and acquisitions.

Our recent work includes such activities as expanding international exchanges,continuing to organize a series of training courses, doing in-depth research on theindustry’s hot issues, studying the market demands for investment, and offering better service to members. One of the priorities is to actively involve ourselves in the preparations for the setting up of WTCF Investment Subcommittee and preparations for Tourism Investment and Financing Fair that goes on the sidelines of the Chongqing Xiangshan Summit.

WTCF: Have you found any new trends of the current world equity fund sector?

Li Weiqun: To put it simply, the world investment equity fund industry has maintained a relatively rapid growth and the trend will continue for some time in the future.

In terms of regional distribution, Asia has witnessed a relatively rapid growth.The growing rate of China's equity investment in 2015, in particular, ranked first in the world, and is expected to change the situation where North America has all along taken the lead. According to statistics of the first quarter and the first half of this year, China's foreign investment surpassed those of the United States, and it can be said that China has become the center of this global wave of mergers and acquisitions. With the gradual deepening of the One Road One Belt connectivity initiative, the internationalization of the RMB and the Going Global program of Chinese enterprises, China's domestic equity investment and overseas mergers and acquisitions will be further accelerated.

When it comes to industry distribution, high-tech projects with high growth expectations have been the focus of investment in the equity industry. In addition to the application of information technology represented by large data, green technologies represented by energy saving and environmental protection,health-care technologies represented by life sciences, advanced intelligence manufacturing represented by robots, the most noteworthy is the massive cultural consumption and investment represented by tourism.

WTCF: As China's most prestigious equity investment fund organizations, how does CAPE see the relationship between equity investment and tourism in China?

Li Weiqun: One, the CPC Central Committee and the State Council have in recent years paid great attention to the development of the equity investment industry, and have introduced a series of supporting policies. Various departments, provinces and cities have also come up with relevant policies and allocated funds to promote the rapid growth of the China equity investment industry, with the scope of industry, the number of agencies, the size and capacity of staff showing a trend of fast improvement.

Meanwhile, as living standards improve and domestic and international transport becomes more convenient, we have more diverse demands for holiday and entertainment which has been so far dominated by travelling. The huge demands for tourist attractions, tourist routes, tourist services and facilities bring about a great number of opportunities of investment cooperation for the equity investment industry.

The equity investment industry has a unique advantage in “capital pooling, wisdom collecting and resource garnering” and has begun to receive recognition and appreciation from all levels of government and extensively among the tourism-related industries. More and more institutional investors will focus on and enter the tourism industry. They are bound to play a positive role in the tourism industry, including the development planning, exploitation and construction, management improvement, application of new technologies,scientific operation, industry upgrading, and improvement of tourists’ experience.

WTCF: How will investments aid and boost the tourism industry,the city itself and the general public?

Li Weiqun: Increasing the extent of investment can positively affect the tourism industry itself, such as speeding up the tourism development planning and exploitation and construction in the region, strengthening international cooperation and communication, improving the financing capacity and impetus of the tourism enterprises, radiating tourism to related industries and surrounding regions,ameliorating travel agencies, hotels, transportation and other travel services,improving the tourist service level and management capacity, and enhancing the profitability, potential and competitiveness of the tourist industry.

It can also converge expertise and experts for urban development, promote industrial restructuring and optimization, and better the city image, showcase both natural scenery and fine traditions and customs, improve local transportation services, enrich dining and entertainment choices, boost regional consumption and economic growth, promote local distinctive culture, and increase employment and per capita income.

For the general public, it can play positive and profound roles in aspects such as expanding the general public’s horizon, enhancing communication, improving their working and living environment, raising their cultural consumption level and happiness index, creating job and cooperation opportunities.

WTCF: What measures will be taken in the future to promote cooperation between the equity investment and tourism industry?

Li Weiqun: CAPE attaches great importance to the numerous opportunities for cooperation that were brought about by the rapid growth of the tourism industry.It will also make use of its resource advantage characterized by its “marketization and internationalization”, and actively participate in and support innovation and healthy development of the tourism industry. Specifically,

We call on local governments to emphasize the development of tourism, accelerate the planning and implementation of the development fund of tourism industry, and utilize the mechanism advantages of market-oriented operation andprofessional advantages of equity investment, so as to speed up the construction and development of the local tourism industry.

We invite employees of tourism enterprises and related industries to comprehend learn, and participate moderately in equity investment, and attend the numerous international forums and specialized training programs hosted by CAPE.

We shall strengthen the research of the tourism industry and share important timely information such as the latest research reports, industry data, representative cases and successful experiences, through large international forums, industry development seminars, road shows and internet-based media like websites, WeChat and e-mailing.

We actively participate in all types of investment-related activities hosted by the WTCF, study the market demand, and strive to provide the best service to our WTCF members, including cities and institutions, and fellow workers of the tourism industry well.

WTCF: How do you interpret the intention of WTCF of setting up an investment subcommittee and listing it high on the agenda at this year’s Chongqing Fragrant Hills Tourism summit? What significance will this have for CAPE and its membership institutions?

Li Weiqun: We found that large international trade organizations like WTCF organize large-scale forums and summits almost every year and discuss topics like investment cooperation, but few have gone further by setting up investment committees. WTCF will formally launch investment clubs at the summit this year. This shows it takes investment cooperation seriously and pragmatically. It is the only way to boost members’ cohesion, enrich service contents, and enhance international influence, and expand development potential.

CAPE participates in the launching of WTCF investment subcommittee hoping that the equity investment members can quickly enter the tourism industry, get to know the development trend of the industry, study and evaluate the opportunities of investment and cooperation, tourism enterprises and cities, and provide maximized communication benefits, abundant resources, and collective information. After the establishment of the investment subcommittee, CAPE will work together with WTCF in planning and completing all work groups and information systems, organizing all kinds of discussion groups, training and inspection programs, and on-line/off-line activities.

WTCF: As a leading expert in the equity investment industry,what specific opportunities and challenges do you think shared economy will bring to investment finance and tourism?

Li Weiqun: Shared economy is fundamental theory and inevitable trend of current and future human development and social progress. Financial investment and urban tourism development should follow this trend and law.

First, the material aspect of shared economy can bring us opportunities of worldwide connection, cooperation, value exploration, and harmonious development. Advanced technologies can be applied and promoted, high-quality resources can be utilized scientifically, financial investment can receive satisfying return, and city tourism can help realize healthy development.

Secondly, at the theoretical level, shared economy can give us direction for the global economy and the future of social endurance, sharing and harmony. The challenge can be met through the technical support for information exchange,rapid establishment of a trust base, gradual lowering of cross-border obstacles,communication and recognition between world cultures, and sharing ofexperience and resources.