The most developing industry in China at present

The major industries with the greatest development potential. What will be the future development prospects of each industry? Where are the opportunities? Here we select the top eight industries in the "2009 China's 30 Segmented Emerging Industries List" and conduct a simple analysis of each industry from several aspects such as market demand, development status, relevant industrial policies, and future prospects.

Through the interpretation of the eight major sub-industries, we found that these emerging industries have broad development space and represent the future industrial development direction and hot spots. A series of relevant statistics also show that VC and PE investment in these emerging industries has been increasing in recent years, continuously injecting fresh blood into the subsequent development of these industries.

Medical care: an eternal sunrise industry

Reason for the list: related to people's livelihood, sustained growth, non-cyclical, and stable profits. "Medical care will be the three areas that IBM will focus on in 2009." field." An IBM insider once said publicly. Faced with the 850 billion yuan medical reform business opportunity, many multinational companies such as IBM, Siemens, Cisco, and GE have taken action one after another. Judging from the emerging industry promotions of 12 venture capital firms, healthcare is generally optimistic. 9 firms, including IDG, Zero2IPO, SoftBank SAIF, and Qiming Venture Partners, have promoted the healthcare industry and given high scores.

The medical industry is an industry closely related to residents’ lives. As residents’ wealth continues to grow, people’s requirements for health are becoming higher and higher. Because of this, the total sales volume of the medical industry has been in the process of continuous expansion and has non-cyclical characteristics. Therefore, the medical industry is also regarded as an "eternal sunrise industry." Judging from the past trends of the A-share market, regardless of whether it is bullish or bearish, the medical stock sector has strong investment opportunities.

From an international perspective, with the rapid growth of China's pharmaceutical market, China's pharmaceutical consumption is increasing year by year, and China is becoming a "big cake" that cannot be ignored in the world's pharmaceutical market. Data shows that China’s pharmaceutical market (excluding OTC and proprietary Chinese medicines) has grown at an annual rate of about 20% in the past four years. The industry predicts that by 2013, China's pharmaceutical market will reach 390 billion yuan, becoming the third largest market in the world.

The medical industry in this list is at a broad level, including the pharmaceutical industry, medical equipment, and medical services. According to statistics released by Invest in China, in the year since February 2008, there have been 48 investment cases in the medical industry, involving an investment amount of US$610 million. From this we can see that the medical industry is increasingly becoming a “hot potato” in the eyes of venture capital investors.

Chain service industry: "top students" in traditional industries

Reason for the list: The chain model changes the traditional service industry, which can reduce learning costs and brand promotion expenses, and gain first-mover advantages As the concept of "Chinese consumption" is gaining popularity in foreign capital markets, innovative chain brands in the traditional service industry have been attracting the attention of the investment community. Merrill Lynch investment banker Robert John once said that the pure concept of China can no longer impress American investors, and companies with consumer concepts will be more popular.

According to statistics from China Investment Group, there were 35 VC and PE investment cases in the chain service industry in 2008, involving US$816 million in funds. Although the business content of the chain service industry is not unique, the chain model can bring consistent experience and expectations to consumers, and can quickly cover the market through standardized management, replicating products and management experience. In addition, chain operations can also reduce learning costs and brand promotion expenses, making it easier to gain first-mover advantages. As the wealth of Chinese residents continues to grow, the Chinese consumer market has attracted increasing global attention. Jiang Xiaodong, chief representative and director of NEA China, believes that the change in consumption structure is an essential change in recent years, and it is possible for China to give birth to a world-class consumer service brand. In his opinion, when China's service industry accounts for 70% of the entire GDP, companies like UPS, GAP, and Warmart in the United States will appear in China.

From the perspective of the domestic chain service industry, a number of well-known brands such as Home Inn, Redbaby, and Little Sheep have emerged.

Although the chain service industry was born out of traditional industries, its profitability is no less than that of other emerging industries. Backed by the huge potential of China's consumer market, the next development of the chain service industry may be even more eye-catching.

Wind power: the most mature clean energy

Reason for the list: Technology and model development are mature; global wind power is developing rapidly; China’s market potential is huge. The Global Wind Energy Council recently announced that the 2008 Global The newly installed capacity reached 27 million kilowatts, an increase of 28.8%, higher than the average growth in the past 10 years. By the end of last year, the world's total installed capacity had exceeded 12.08 gigawatts, which was equivalent to a reduction of 158 million tons of carbon dioxide emissions.

Steve, Secretary General of the Global Wind Energy Council. Sawyer believes that the global market has huge and growing demand for zero-emission technologies such as wind power. In order to avoid the consequences of irreversible climate change, global greenhouse gas emissions must peak and begin to decline around 2020, and wind power is currently the only power generation technology that can achieve this goal. News from the European Wind Energy Association shows that wind power has become the leading energy source in Europe's newly installed power capacity.

In terms of clean energy, from the perspective of technology and development model maturity, wind power technology is relatively mature and it provides more electrical energy than other renewable energy sources such as solar energy and bioenergy. Leading other new energy sources for a long time.

As far as China is concerned, wind power generation is in a stage of rapid development in recent years. Data show that in 2008, nearly one-third of the world's newly installed capacity occurred in Asia, with the most significant growth occurring in China, with newly installed capacity reaching 6.3 million kilowatts. China's total installed wind power capacity has exceeded 12 million kilowatts, accounting for 23% of the world's total, ranking second. Steve. Sawyer claimed last year that China would become the world's largest producer of wind turbines in 2009, which would bring new changes to the rapidly developing renewable energy sector.

The reason why the world is optimistic about China's wind power industry is mainly because China's wind power companies have great cost advantages and their technical level is not weak. In addition, Chinese companies have always been expanding their production capacity very quickly and have very strong manufacturing capabilities. Currently, there is basically no export of wind power equipment produced in China. Once the government supports and promotes it, China's wind power equipment exports will develop rapidly and share the feast of the rise of global wind power. Note: my country’s recently announced medium- and long-term development plan for renewable energy states that the total installed wind power capacity will reach 30 million kilowatts by 2020. Taken together, the future development of wind power in China is promising.

Financial services industry: The crisis will not change the growth prospects

Reason for the list: Overcoming the financial crisis requires support from the financial services industry, and subsequent capital flows also require "small business seed funds" , "sales chain financing", "data financing", "inventory pledge" and other new terms frequently appeared in the media after the financial crisis. Although this round of global financial crisis has had a strong impact on the financial services industry, industry experts have said that the financial crisis will not change the growth prospects of the financial services industry. The frequent appearance of these new terms also shows that the passage of the financial crisis must rely on the support of the new financial services industry.

As the established developed countries are gradually declining, developing countries are experiencing continued rapid growth. This will lead to huge international capital flows, and some current financial services can play a role in facilitating this process. From the perspective of capital flows, the financial services industry is an industry that truly faces the global market. Siegel, a finance professor at the Wharton School of the University of Pennsylvania, said that this round of financial crisis has only changed the names of players and will not change the future growth prospects of the financial services industry.

In response to the financial crisis, the state has introduced a series of policies in the field of financial services, aiming to solve the problem of tight capital chains for enterprises. Among them, establishing small loan companies and attracting private capital is one of the measures to deal with the financial crisis. This means that the underground "banks" that "did not see the light of day" are gradually being "adapted" and are beginning to openly intervene in the financial services industry. In addition, if the "Lender Regulations" are promulgated and implemented, this will be the largest reform of China's financial industry in 30 years.

Now that personal lending can be legalized, it should be recognized that private finance is already an indispensable part of China's financial industry.

Whether it is a company or an individual, those who deal with finance will only grow, not decline. This means that the future development space of the financial services industry will be very broad. The financial services industry will become increasingly refined to better meet the different needs of different customer groups.

Power batteries: the core of future cars

Reason for the list: New energy vehicles are on the agenda, and power batteries have a bright future. Wang Chuanfu, chairman of BYD, who has always been low-key, once said with "lofty ambitions" Said "BYD will become the number one automobile company in the country in 2015 and the number one in the world by 2025!" There is no reason for Wang Chuanfu to be so high-profile. As China's largest rechargeable battery manufacturer, it has received an investment of 1.8 billion Hong Kong dollars from Buffett. , BYD will have great potential in the field of electric vehicles.

In response to the global energy crisis, Western developed countries have explored a new energy consumption path of "coal-based - oil-based - electricity-based". "Replacing oil with electricity" is becoming A development trend to alleviate global energy shortages. From a domestic perspective, the contradiction between my country's energy supply and demand is becoming increasingly prominent and its dependence on foreign countries is increasing. Automobile oil consumption accounts for one-third of the country's total oil consumption. The development of clean new energy vehicles is an inevitable choice for energy transformation.

“Rent a battery and get a car as a gift”, some people have made such a “bold idea” for the future automobile industry, which makes sense. As a key component of electric vehicles, power batteries restrict the development of electric vehicles. It can be said that the focus of competition in the future automotive industry will be power batteries.

From a policy perspective, from the "Eighth Five-Year Plan" to the "Eleventh Five-Year Plan", and then to the promulgation of the "New Energy Vehicle Production Access Management Rules" on November 1, 2007, the relevant national new energy vehicle policies The intensive introduction of new energy vehicles shows the country’s determination to accelerate the development of new energy vehicles. From a market perspective, the development of new energy vehicles has become a general trend. In this context, power batteries must have extremely broad room for development and become the "golden industry" in the era of new energy vehicles.

Solar energy industry: short-term difficulties are a good time to invest

Reason for the list: In the long run, solar energy has the greatest prospects among new energy sources. According to the World Energy Organization (IEA), Europe The Joint Research Center and the European Photovoltaic Industry Association predict that the world's photovoltaic power generation will account for 1% of total electricity in 2020, and photovoltaic power generation will account for 20% of global power generation by 2040. According to this projection, the growth of the global photovoltaic industry in the next few decades The rate will be as high as 25%-30%.

China's solar photovoltaic industry is in a situation where the three heads are outside (technology is outside, raw materials are outside, and the market is outside). In 2008, due to the impact of the financial crisis, a large number of domestic Solar module manufacturers have stopped production or closed down one after another because they have no orders to fill. Statistics show that by the end of 2008, 350 domestic solar module companies had closed down, and only about 50 companies remain.

Venture investors are quietly staying away from the solar photovoltaic industry due to bleak market expectations. Xu Jinrong, chairman of Jiangsu High-tech Investment Group, said that the possibility of the company investing in crystalline silicon photovoltaic cell projects in 2009 is already very small. Ma Jun, investment manager of Capital Today, also said that at present, when they encounter crystalline silicon battery projects, they directly pass them.

The market for solar photovoltaic products mainly depends on the cost of power generation. If the cost can be reduced, there will be unlimited prospects. Relevant industry insiders who participated in the first China-U.S. Green Energy Forum said that the solar power generation industry is undergoing its first cyclical adjustment, and 2009 will be the best time for venture capital funds (VC) and private equity funds (PE) to invest in solar energy companies.

Although solar energy is currently in trouble, in the long run, once there is a technological breakthrough and the cost of power generation can be reduced, the solar energy industry will face explosive development. For the solar energy industry, only by taking a long-term view can we catch big fish.

Education and training: booming development without bubbles

Reason for the list: There is huge social demand and there are certain entry barriers. For the education and training industry, the financial crisis has actually played a boosting role. . In order to enhance their employment competitiveness and find a good job, more and more people choose to study in relevant education and training institutions. From the perspective of the capital market, 2008 was a good year for the education and training industry. Relevant survey data show that in 2006, China's online education accounted for only 5% of the entire education and training market. By 2008, its share had grown to 10%. Experts expect that the distance education market will continue to rise in the future, with an average annual growth rate of even It can reach 40%.

The booming development of the education and training industry has also attracted the favor of many VCs and PEs. According to statistics from ChinaVenture, there were 30 investment cases in education and training in 2008, involving an amount of US$458 million, a 62% increase compared to 2007. Education and training has become one of China's most valuable investment projects and is highly praised by strategic investors around the world.

The reason why education and training is developing rapidly in China is that China’s university education is not well connected with social job needs. In recent years, universities have continued to expand their enrollment, and young people have been under increasing employment pressure. This situation has provided a broad development space for private education and training. Segmented education and training markets such as vocational skills training and export study abroad training have sprung up like mushrooms after a rain. "China's private education is a huge market that urgently needs to be developed." Liu Erhai, general manager of Legend Investment, once said.

As long as any phenomenon overheats, there is the possibility of bubbles. However, most people in venture capital and education and training companies believe that there is no bubble in the education industry. Yang Dong, a partner of SoftBank SAIF Investment Fund, believes that the education and training industry is restricted by development characteristics, such as teachers having to undergo training before taking up their posts. The development speed is relatively slow and long-term and stable investment is required to achieve returns.