Shanghai Jinpu President Advocates Value Investment Amid Policy, Geopolitical Risks

Shanghai Jinpu Investment's President, Gao Lixin, recently addressed the importance of adhering to value investment principles during a gathering. He emphasized that investment risks extend beyond market and industry risks to include policy, geopolitical factors, and exchange rate fluctuations. These elements can significantly impact a company's supply chain and sales, making the primary market for equity investments a unique environment.

Gao Lixin highlighted the need for investors to avoid the pitfall of chasing trends in the primary market. He advised that focusing on the intrinsic value of investments rather than short-term market hype is crucial for long-term success. This approach helps in mitigating risks associated with policy changes, geopolitical tensions, and currency fluctuations, which can have a profound impact on a company's operations and financial performance.

The primary market for equity investments presents a distinct set of challenges and opportunities. Investors must navigate through various risks, including those arising from trade wars and other geopolitical issues. Gao Lixin's advice to prioritize value investment principles serves as a reminder that a disciplined and strategic approach is essential for achieving sustainable returns in this complex environment. By focusing on the fundamental value of investments, investors can better withstand market volatility and external shocks, ultimately leading to more stable and profitable outcomes.

Gao Lixin also noted that the current global landscape is marked by rapid technological advancements and geopolitical shifts. These changes have led to the emergence of new industries and innovative companies, offering both opportunities and challenges for investors. He emphasized the importance of conducting thorough research and making forward-looking analyses to identify promising investment opportunities.

In addition to focusing on value investment principles, Gao Lixin stressed the importance of strong post-investment management. This includes providing support in areas such as corporate governance, strategic consulting, financial management, talent acquisition, and market expansion. Effective post-investment management can help companies navigate challenges and enhance their value and competitiveness, ultimately leading to better investment outcomes.

Gao Lixin also highlighted the significance of policy direction in investment decisions. Government policies, such as fiscal subsidies, tax incentives, and industry planning, can greatly influence the development of strategic emerging industries. Investors must carefully consider these policies when making investment decisions to maximize their returns.

Despite the current uncertainties, Gao Lixin remains optimistic about the long-term prospects of the economy and technological innovation. He believes that by continuously improving their professional skills and risk management capabilities, investors can seize new opportunities and achieve success in the ever-changing investment landscape. Gao Lixin's insights provide valuable guidance for investors navigating the complexities of the primary market for equity investments, emphasizing the importance of a disciplined and strategic approach to achieving sustainable returns.