HANGZHOU, China, May 28, 2015 /PRNewswire/ -- The first Rongyuan Fortune Summit Forum was successfully held in Hangzhou on May 22, 2015. The event was hosted by Housheng Group, organized by Rongyuan Asset Management Co., Ltd and co-organized by Meihua Huijin Investment Group and Botong Investment.
The organizer of the forum invited Professor Alan Krueger, former assistant secretary of the US Treasury and top White House economic advisor, to attend and address the forum. Professor Krueger mentioned more than once during his speech that China needs to spend time considering how to avoid the occurrence of the "middle-income trap".
Further elaborating on China's economic situation, Professor Krueger held that the problem for China now is that the country is entering the tricky middle-income stage of development where its per capita GDP has moved above $US 3,000 yet has not reached the $US 10,000 threshold.
According to World Bank data, per capita GDP in mainland China reached $US 6,100 in 2012, moving its status up to that of a middle-income country. The reduced labor supply and rising labor costs have led to the decline of its low-cost advantage. In addition, factors such as the ecological environment and resource conservation have also altered the low-cost advantage of its non-labor force, signaling that China has lost the competitive edge in terms of labor when compared with other developing countries.
Confronted with the question "will China successfully ride out the middle-income trap," Professor Krueger said that China has been slow in boosting domestic consumption. In his speech, the professor suggested that the Chinese government increase investment to raise the level of social security and postpone the retirement age moderately to tackle the labor shortage issue. He said if the Chinese government continues to push reform forward and eliminate institutional obstacles, it is likely that China can effectively avoid falling into the middle-income trap.
At the forum, Silk Road Holding Group chairman Lin Lanfang, Focused Photonics (Hangzhou), Inc. CEO Yao Naxin, Zhejiang University School of Management professor Xing Yiqun, Silicon Valley Meihua Huijin Aimiao Capital CEO Hu Feng and Housheng Group chairman He Yong had in-depth discussions with Professor Krueger spanning a wide range of topics including the future development direction of Chinese companies, the current economic situation in China, how to deal with China's labor predicament and how Chinese companies should go about expanding into markets outside the home country.
Rongyuan Fortune also held a launch ceremony for the 2 billion yuan Rongyuan No.1 hybrid private equity fund during the forum.
According to Housheng Group chairman He Yong, Housheng Group Co., Ltd. ("Housheng Group") is a comprehensive financial group co-founded by many passionate, ambitious and socially responsible individuals in the investment sector (including several top professors from Tsinghua University, Peking University and Cheung Kong Graduate School of Business), specializing in private funds, investment banking and third party wealth management. The Housheng Group has three major business segments: Meihua Huijin Investment Group (PE/VC, M&A, private placement and investment banking), Botong Investment (stocks, futures and bonds) and Rongyuan Fortune (third party wealth management), with dozens of subsidiaries and branches in Beijing, Shanghai, Sichuan Province, Shandong Province, Gansu Province and Silicon Valley as well as an Office for North American Affairs in New York an Office for European Affairs in London.
The newly rolled-out Rongyuan No.1 fund is a hybrid fund tailored for high net-worth clients enabling investors to choose a single fund product that maintains a diversified investment portfolio with a relatively smooth yield curve ensuring the stability and absoluteness of their returns.
SOURCE Youth Group