My fintech empire.

Chapter 1229 [Career Focus Shifts to High-Tech Field]

Under this new trend, many domestic investment institutions have had to make adjustments. The hearts of stock investors and fund investors have flown to the SGX, which means that money is also flying there. Those investment institutions have had to increase their focus on the SGX market, otherwise there will be no customers. This is a very direct problem.

After entering the new year, the sixth SGX 50ETF on-exchange fund is about to be issued and listed. In addition, the highlight is that a number of public funds have announced that they will launch on-exchange funds with SGX themes.

Because SGX has no plans to launch more indices and industry ETF funds, the outside world has gradually come to understand that SGX intends to only launch one SGX 50 Index and the ETF of this index and will not launch other indices.

This was actually Fang Hong's request, because they also had to consider the listed companies of Guo Jia's team on the main boards of the two neighboring cities.

However, the A-share market itself already has various industry ETFs or related fund varieties. For example, the semiconductor ETF fund now also includes Xinwei Semiconductor, which is listed on the Singapore Exchange and specializes in the research and development and manufacturing of lithography equipment. For example, the pharmaceutical ETF fund also includes Ruihe Pharmaceuticals, which is listed on the Singapore Exchange, and they are all among the top ten heavily held stocks.

This was not done before, but some investors who were planning to invest in industry ETFs were shocked to see that your semiconductor ETF did not hold any shares of Xinwei Semiconductor, and your pharmaceutical ETF did not hold any shares of Ruihe Pharmaceutical. These are the best companies in the industry, which have risen so fast, but they are not included in the holdings. Instead, a bunch of lousy stocks are put in, and they are not bought directly.

After a period of time, it could no longer be sustained, so it began to be included in the ETF.

The neighbors really don't want to but have to. Including it can at least make the ETF perform better, protect other stocks and attract funds. Otherwise, no one will support it.

If the Shanghai Composite Index can be brought back to 3200 points, it is also crucial that the SGX-listed targets be included in industry ETFs.

At present, public fund institutions have begun to launch their own SGX-themed on-exchange funds based on the strong market demand. Fang Hong does not allow SGX to develop small and medium-cap stock indexes and related ETF funds, but many small retail investors in the A-share market want to invest in those small-cap stocks but have no way to do so. Many small-ticket growth stocks have risen even faster than the SGX 50 Index.

Where there is market demand, there must be supply.

Well, public funds have noticed the market demand here, and many institutions have begun to launch on-exchange funds. Fund managers select a package of stocks in the SGX market, and retail investors can indirectly invest in small-cap growth stocks by trading these on-exchange funds.

……

At the beginning of 2017, Fang Hong also shifted the focus of his career from the financial sector to the physical manufacturing and technology sectors, because he judged that the game in the financial sector would most likely calm down for a while in the coming year.

America's financial war, which lasted for two full years, failed to achieve the results they expected. It can be said that it was far below their expectations. Now they have retreated, and the situation at home is also complicated. It is unlikely that they will make a comeback in the short term.

But that doesn't mean America will stop causing trouble. After failing in the financial war and not gaining any benefits, it is very likely that it will immediately start new work this year and turn to the technology war, and will further increase the intensity of the technology war.

Wednesday, February 2th, Xingyu Technology Headquarters.

Fang Hong came to the company's headquarters today. At this moment, he and Qin Feng were walking around the company's new energy vehicle research and development department. Qin Feng sighed as he walked, "I found out after entering this industry that the automotive industry is much more difficult than the smartphone industry, and it requires more time and money than smartphones. I still don't dare to say that I am an expert."

"It will only take one or two years to make it, so we wouldn't hand it over to your Xingyu Technology." Fang Hong said with a smile. If others can't do it, you can do it. This statement is a great recognition of the capabilities of Qin Feng and Xingyu Technology.

The two left the front-line R&D department and came to a small meeting room.

Qin Feng found a random seat and sat down and said, "In the automotive industry in 2016, the thing we did most was to travel around and learn. We went to Europe, Japan, BYD, etc. We were warmly received, but also rejected."

Fang Hong couldn't help but smile. It was normal to be turned away. After all, colleagues were enemies. He immediately looked at him and asked, "What did you get?"

Two years ago, Xingyu Technology announced that it would develop new energy vehicles and enter the field of automobile manufacturing, but until now there has been no sign of a car. Although the investment has exceeded 100 billion yuan, this is because they are really going to do it, and not just making cars with PPT. The ability to burn money in this industry is even greater than that of the mobile phone industry.

Moreover, there were some disturbances in this circle last year. It was Boss Jia who turned "returning to China next week" into a joke. This incident also caused the outside world to question Xingyu Technology's development of new energy vehicles.

At this moment, Qin Feng said in a deep voice: "We have been running for a year, studying for a year, and researching for a year. My conclusion is that in the new energy vehicle circle, BYD may soar to the sky in the future, and other brands are relatively nothing to worry about."

Fang Hong became very interested when he heard this. The fact that he could come to such a conclusion showed that he had worked hard in this field and his judgment was correct.

After a moment, Qin Feng looked at Fang Hong and said, "We have focused on studying BYD. It can be said that this company is truly a student of Toyota, or even the entire Japanese automobile industry. Every step BYD has taken so far is actually imitating Toyota. BYD is likely to become the next Toyota in the automobile empire in the future. If Xingyu Technology enters this industry, it will be a very strong competitor."

Qin Feng further said: "We have dismantled several BYD cars for systematic research. BYD seems to be imitating Toyota, but in fact it has taken a different path from Toyota. Whether in Europe or Japan, hybrid vehicles are still stuck in how to divide energy between power and electric drive, while the path BYD is taking now actually has a deeper understanding of electric drive, batteries, energy storage and the future of the automotive industry, and the road planning is more reasonable."

"In addition, BYD has already been very mature in the entire mechanical processing industry chain, whether in battery manufacturing or mobile phone OEM. If it continues in this trend, BYD will surely soar within three to five years."

Over the past year, Qin Feng and Xingyu Technology's new energy vehicle team have truly learned from their peers with a humble attitude, and have not become arrogant because of their outstanding achievements in the field of smartphones.

As the saying goes, every different trade has its own obstacles. When Qin Feng crossed over to the automotive industry, he took the attitude of a novice and learned from the seniors. He was confident that he could make achievements in this industry, but he was not arrogant.

Qin Feng continued, "We also went to Japan to study Toyota. I wanted to understand the essence of Toyota's success. I used to think that the essence of Toyota was zero inventory, but after in-depth research and study, I found that DOE was the essence."

Fang Hong said: "DOE, that Taguchi experimental method?"

Qin Feng nodded: "Yes, it is the engineering iteration plus experimental design based on DOE that is the magic weapon for the rise of Toyota and even the entire Japanese car industry. And the principle of DOE is similar to the AI ​​model developed by Chen Yu in a sense. You see, there is the input x variable and the output y variable, and the industrial production process is regarded as a transfer function of AI. There are also analytical regression and gradient descent of loss function, etc."

"Japanese cars are more conservative than those in Europe or North America in the application of new technologies. The reason is that the variance analysis based on DOE plus the regression process is to ensure the relative stability of the process. That is to say, after various variable factors have reached a steady state through a recursive process and various analytical output processes, it is best if they remain unchanged for ten or even twenty or thirty years. Then, cheap cars can be produced stably and in large quantities."

"Today, BYD has also laid a solid foundation in the fields of electric drive, electronic control and battery. It is foreseeable that when all the underlying technologies of BYD become stable, it will be able to pursue stable and mass production, and the cars produced will be cheaper. I will not be surprised if they sell a car for less than 10 yuan in the future."

……

(End of this chapter)