Softbank Is in Crisis Due to Too Much Risk on the Market
This is not the first time that Masayoshi Son, founder and CEO of Softbank Group, experienced a crisis. At the peak of the Internet bubble in 2000, he had invested in companies such as Yahoo, but with the bursting of the Internet bubble, the market value of Softbank quickly fell from 200 billion US dollars to 2 billion, and it was on the verge of bankruptcy. A well-known venture capitalist told Caijing that Masayoshi Son’s investment method has never changed in decades. Most investors are game winners, and he is a rare game changer. His idea has always been to be “the largest company in the world”.
Softbank spent nearly $19 billion on the WeWork project. WeWork’s valuation fell from 47 billion at its peak to 8 billion today. It is not the problem with the Softbank’s own business model that led to its ongoing crisis, but the secondary market no longer accepts the unreasonable pricing given by Masayoshi Son. No one in the capital market today can absorb the risks posed by Softbank, which is the central factor of Softbank’s crisis today.
Yang Guofu and Zhang Liang, Two Spicy Hot Pot Giants Talks About Unknown Stories
Yang Guofu and Zhang Liang brought spicy hot pot — malatang — to the whole country, turning their hometown of Bin County, Heilongjiang Province into a capital of spicy hot pot. They are fellow villagers, relatives, competitors, and a community of destiny in some sense.
No one thought a few years ago that an unnoticed street food of spicy hot pot can breed large chain companies. It was Yang Guofu and Zhang Liang who changed everything. In the past 15 years, these two successful companies have maintained rapid development, and have promoted their brands to all parts of the country and even overseas, and registered brands in dozens of countries. The personal relationship between Yang Guofu and Zhang Liang is a topic that the outside world has always been curious about. In the face of all sorts of gossip, both sides have been silent for years. Recently, Yang Guofu and Zhang Liang, at their respective company headquarters in Shanghai and Harbin, spoke for the first time to Caijing and talked about their stories, which were unknown before.
Reform of Growth Enterprise Market Is on the Way
On October 30th, the Growth Enterprise Market celebrated its 10th anniversary. In the past 10 years, the GEM has experienced a boom and encountered setbacks after the bubble burst. But after 10 years of development, the GEM has begun to mature and a registration-based IPO system will soon be launched.
A person close to the Shenzhen Stock Exchange told Caijing reporters that the schedule for the reform of the GEM is accelerating. In fact, the Shenzhen Stock Exchange also said that the GEM is currently facing problems such as lagging behind regulations and a relative shortage of outstanding enterprises. These problems urgently need to be resolved through reform and institutional innovation. At present, the STAR Market has been running smoothly for three months, and the promotion of the reform of the GEM is of great significance. Insiders pointed out that this move demonstrates the determination of the regulators to reform, and also demonstrates the recognition of the STAR Market and registration-based IPO system, so the reform experience can be promoted elsewhere.
NHSA Cracks Down on Healthcare Insurance Frauds
2019 has been a tense year for the National Healthcare Security Administration and the designated medical insurance agencies nation-wide for the government increased the intensity of investigating healthcare insurance fraud to ensure the safety of more than 2 trillion yuan of medical insurance funds.
An official from the NHSA told Caijing reporters that there are many targets for the supervision of medical insurance funds, and the fraudulent behavior is hidden. There are government-approved medical institutions and pharmacies committed fraudulent insurance, as well as insured personnel, employers, and agencies participating in the cheat and fraud. The special action is to form a high-pressure situation and minimize the fraud of the medical insurance fund. In order to solve the problem of fraud, in addition to strengthening the supervision, it is necessary to improve the legal regulations and management systems, which must be completed through the reform of the medical system.
