Cover Story

Chinas Opening up in Financial Sector Speeds up

With the advent of the Shanghai-Hong Kong Stock Connect， which will seize its own business and grow rapidly， QFII has completely liberalized the quota limit. People in the industry generally believe that such a large-scale reform means that there will be benign competition between the two， and the speed of opening of the market has also raised regulatory chal- lenges.

After the full liberalization of the QFII quota， the manage- ment authorities will be faced with challenges. Some insiders believe that the management should learn from the capital markets of developed countries at this stage， and then carry out institutional learning and design. A senior foreign-invested institution pointed out that the cancellation of the QFII quota means that the mainland capital market has expanded its pace of opening up to the outside world. The convenience of QFII investment will once again be greatly enhanced， and the main- land capital market will be better and more widely accepted by the international market.

Sino-US Scientific Cooperation Starting to Thaw

On October 11， the Sino-US trade negotiations concluded its first phase with substantive results. Shortly after， US Pres- ident Trump said that the American university system is open to the world and China will not be treated differently. It shows the consensus of the two countries on this issue and provides an opportunity for further development of Sino-US scientific and technological cooperation and exchanges. International students are the bridge between Chinese and American cultural exchanges and the basis for comprehensive scientific and tech- nological cooperation.

The flow of talent between China and the United States is the worlds largest bilateral talent flow. The Chinese talent are not only the largest group of international students and scholars in the United States， but also the group that cooper- ates most with American researchers. Previously， with the US government to some extent restricting foreign scientific and technological cooperation， joint research and data exchange between Chinese and American academic circles has become increasingly difficult.

Nobel Prize in Economics of 2019 Awards Efforts of Poverty Alleviation

This years Nobel prize in economic sciences was awar- ded to three development economists， Michael Kremer， Abhijit Banerjee and Esther Duflo. The research subjects of devel- opment economics are very diversified， including education， health， gender equality， and family decision making. But the main thread connecting these complex themes is to alleviate poverty， promote economic development and growth， and achieve “equal opportunity” in different societies.

In order to achieve these goals， policy makers in different countries and regions have made various efforts. Duflo and Banerjee have set up a poverty action laboratory in India. Since its inception in 2003， the laboratory has carried out various ex- periments in the fields of education， health， environmental pro- tection and politics in different regions. The estimates of these experiments provide important policy recommendations for al- leviating poverty. At the same time， efforts to reduce poverty in each country and regions will continue. For example， Chinas poverty alleviation policy has achieved great success so far.

Founders of Sinovation Ventures Reflects on the Development Path of Internet Business

The Sinovation Ventures was founded 10 years ago and moved three times without leaving the Zhongguancun area. Once a cradle of entrepreneurs and startups， and now the home to all of the large tech firms the evolution of Zhongguancun is a metaphor that reflects the development path of Sinovation Ven- tures. In 2009， Li Kaifu was well known for being the ideal “startup instructor”. In 2014， after Li Kaifu was sick and rested for more than a year， the Sinovation Ventures began to move toward the technology fund that covered from angel investment to pre-IPO. Today， the funds that Sinovation Ventures manages have exceeded $2 billion.

In the 10th year since its launch， Caijing magazine in- terviewed Sinovation founders Li Kaifu and Wang Hua. They have made mistakes and returned to the right path of develop- ment， but overall， Sinovation Ventures are one of the few funds that have witnessed the intergenerational change of entrepren- eurs and the changing environment of internet businesses. All of this makes their reflection very valuable in thinking about the path of Internet business development.