Technological innovation and social impact have always been the focus of BEYOND Expo. From 8:45 am to 10:00 am on September 21st, the opening ceremony of the 2nd BEYOND International Technology Innovation Expo (hereinafter referred to as “BEYOND Expo 2022”) was held in BEYOND Metaverse.
Around the theme of the opening ceremony of BEYOND Expo2022 – “What’s Next?”, the organizing committee invited Dr. Roger Kornberg, the 2006 Nobel Laureate, Chairman of the World Association of Top Scientists, and Founder of Sino-Israeli Hyde; Zheng Xuexuan, Chairman and Party Secretary of China State Construction Engineering Corporation; Shi Yigong, President of West Lake University, Academician of the Chinese Academy of Sciences; Founder of CATL , Chairman and CEO Zeng Yuqun; Hillhouse founder Zhang Lei; Merck China President, Merck Electronic Technology Executive Vice President An Gaobo; Dripguantong Group Founder and Chairman Li XiaojiaGathered in the BEYOND Metaverse, shared insights on hot topics such as the latest trends in the industry, cutting-edge technological innovation concepts, and the impact of technology in the world of future living, and talked about the future of global technological innovation.
In the keynote speech at the opening ceremony, Li Xiaojia, founder and chairman of Diguantong Group, pointed out that in terms of the operation mode of the financial system in the economic society, the modern Wall Street model is probably the most important innovation in the modern society in the past 100 years. one. However, with the advent of the digital age and the Internet age, the fit of this model with the current era is gradually being rethought by the outside world, and this model is likely to be undergoing a subversion.
He said that in the industrial age, all commodities were concentrated in department stores, so everyone had to go to such a centralized market for shopping. However, the distribution of goods and commodity transactions in the digital age and the Internet age can be completed through digital technology. Various marketplaces, online marketplaces, allow for the exchange of money and goods. This is a fundamental subversion of traditional finance and traditional business.
Taking China as an example, most of the economy has become a cashless economy, and most financial activities in China, even the most basic level of small and micro enterprises, have been completely digitized. Here, all transactions are also completely transparent. At this time, small and micro enterprises do not have to be formed into large enterprises. It is for this reason that in the process of promoting the steady development of these small and micro enterprises, a new blue ocean of investment has also emerged.
In this context, Drip Express is trying to innovate a new way of financial services – a new operating system called micro star. He introduced that the system contains five key elements, namely, an investment product, two grippers and two navigation maps, in order to help realize the capital connection between capital and small and micro enterprises.
At present, Drip Express has invested in more than 1,000 small and micro enterprises in China, involving more than 100 fields, mainly in the four major industries of retail, consumption, service and cultural activities that Chinese consumers need for daily basic needs.
Li Xiaojia said this new model was unprecedented, but China’s digitalization made it possible. Moreover, this kind of investment will also promote its impact investment, sustainable financial development planning – “We are not only doing public welfare, but also doing good public welfare. This is our dream and what we are working on. “
He also further emphasized that the only way to invest in small and micro enterprises is China’s in-depth and comprehensive digital technology development, especially the digital development of the payment industry. “I think the technology support helps us see investment in the Chinese consumer sector. Although in the traditional financial services way, this kind of investment is the least likely. Because of the development of technology, the investment in the Chinese consumer sector is the closest and most likely. Success. Because technology makes investing in this area simpler, more efficient, fairer and more inclusive.”
The following is the full text of the speech:
Hello everyone, my name is Li Xiaojia, the founder and chairman of Drip. It is a great pleasure to have the opportunity to speak at the Macau International Science and Technology Innovation Expo to discuss topics related to the future. I am very happy to share with you my experience and views on the development of our company in the past few years after I left the HKEx.
I have been in the financial industry for over 25 years, including 11 years at the HKEx. Therefore, I think I have a deep understanding of how the financial system works in the economy and society. In my opinion, the modern Wall Street model has been alive and well for over a hundred years and is probably one of the most important innovations in modern society. Because of raising funds to build large enterprises, and then obtaining public support through stock dividends—on the one hand, through financing, the centralized market allocates funds for large enterprises to develop the economy. On the other hand, the shareholding system facilitates capital redistribution and public support.
The Wall Street model worked in the industrial age. Because the economic situation of the grass-roots class is unclear and information collection is difficult, an institutionalized, specialized and centralized management Wall Street co-ordination organization is needed to help people collect information to understand prices and conduct business activities in the traditional financial market. But I think the next question is the most interesting. That is, whether the changes in e-commerce social media, whether the revolutionary changes or divisions that have been witnessed this year, also have the potential to upend the traditional Wall Street model.
For example, we all know that in the industrial age, everyone went to department stores, because all commodities were concentrated in department stores, so everyone went to such a centralized market for shopping. However, in the digital age and the Internet age, the distribution of goods and commodity transactions can be completed online and through digital technology. Then, the logistics industry developed. Everyone can shop at home and wait for delivery to their door, and various markets, online marketplaces can exchange currency and goods. This is a fundamental subversion of traditional finance and traditional business.
I think this is an era in which the financial services industry will experience a similar disruptive disruption. At least in China today, most of the economy has become a cashless economy, which means that most financial activities in China, even the most basic level of small and micro enterprises, have been completely digitized. This means that all transactions are completely transparent. With the digitization, transparency & digitization of these small and micro enterprises, is it still necessary to force these small and micro enterprises to form large enterprises? Many small businesses don’t do this, and millions of small businesses don’t. There are 17 million small and micro enterprises in China. I believe that there is indeed an opportunity to change the model and structure of the financial services industry. For the first time, finance can actually be used as sustainable capital to promote enterprise development, and promote the development of small and micro enterprises. Steady development of capital expenditure and development of enterprises. More importantly, it will give the global investment community the opportunity to touch the new blue ocean of investment in small and micro enterprises, obtain long-term sustainable growth opportunities and high-quality returns, and obtain growth opportunities and returns that are currently unavailable due to the concentration of financial services.
Therefore, we are trying to innovate a new way of financial services, abandoning traditional financial products, traditional discovery process and delivery process. We actually took a whole new approach. new operating system. It’s called a micro star, and there are five key elements. It’s our new product with two grippers and two navigation charts. Different financial services are available with this new MSI operating system.
First, why focus on small and micro businesses? Obviously, small and micro enterprises are mainly concentrated in the consumption field, and in this entire field, these small and micro enterprises account for nearly 60% of China’s GDP, 70% of government revenue, and solve nearly 80% of employment. So obviously, this area is the most dynamic part of China’s economic development, and capital must find a way to enter this extremely important area. So we set goals to help connect capital — primarily through a new system we call MSI.
The five key elements of the system are an investment product, two grippers and two navigation maps. This investment product is called a Daily Revenue Share Contract/DRC. This is not debt because we investors also share the risk. Nor is it equity, because large-scale equity investments in small and micro businesses are not economically viable. But it’s a form of daily direct contract that pays off upfront capital expenditure investments through revenue. That’s why it’s called a daily revenue share contract. This is a brand new asset class tailored to help small and micro businesses. At the same time, the daily income recovery makes investors’ returns have the characteristics of transparency, distribution, reliability, risk controllability, and high quality under the diversified strategy. Therefore, it is really a win-win investment in new products.
However, the uniqueness of this investment product requires two distinct delivery systems. Because at the distributed level, it is necessary to be able to collect investment information. Therefore, there must be two graspers, one grasper is responsible for the return of data and direct payment from the income of small and micro enterprises. This digital account splitting system is highly developed and feasible in various integrated payment systems in China, which are used by many industries. Therefore, as long as the existing technology and the existing system are used, the digital income of the investor can be ensured every day. On the other hand, when investors earn income, make sure there is a new type of trading platform. Among them, the underlying infrastructure is the blockchain, which can help investors prove that every penny received and entered into the system is effectively recorded in the blockchain and belongs to the investor, no matter where and when All belong to him. And the ultimate in permeable regulation, enabled by technology, can help us do that at scale. Not only is it efficient, it also requires minimal labor and cost management delivery in terms of monitoring and enforcement systems. But these fees are not economically viable for small and micro businesses.
The latest MSI systems also have two what we call navigation maps, which are maps of how to get to your destination. Said that the navigation map is a technical term, it basically refers to the engine that allows us to efficiently deploy large-scale small and micro enterprises. And another navigation map ensures that we can accurately predict the economic and financial performance of specific companies and specific regions. This investment is not only large-scale and high-efficiency. It also combines precision and quality to ensure the sustainable development of investment.
This new model was unprecedented, but digitalization in China made it possible. We have already started such investments, investing in more than 1,000 small and micro enterprises in China, involving more than 100 fields, mainly in four major industries – retail, consumption, services and cultural activities. These areas are the basic daily needs of Chinese consumers. Although facing various challenges, although everyone said that investing in small and micro enterprises in China is high risk, it is not necessarily worth investing in. But in general, as long as the portfolio is large enough, diversified enough, and diversified enough, a new way of investing can be found. A new financial service paradigm with transparency, decentralization, diversification and sustainability. The most important thing is that because of our investment, this decentralized investment may affect hundreds of thousands of millions of small and micro enterprises, so our vision is: to create and invest in one million small and micro enterprises in the next 10 years, there are One million annual income creates at least 10 million jobs indirectly. Because of this investment — this new investment paradigm will also promote our impact investing, sustainable financial development programs. By investing in this way, we are not only doing public welfare, but also doing a good job in public welfare. It’s our dream and it’s something we’re working on.
In my opinion, the only way to invest in small and micro businesses is China’s in-depth and comprehensive digital technology development, especially the digital development of the payment industry. I think the technology blessing helps us see investment in the Chinese consumer space. Although in the traditional way of financial services, this kind of investment is the least possible. And because of the development of technology, investment in China’s consumer sector is the closest and most likely to succeed. Because technology makes investing in this area simpler, more efficient, fairer and more inclusive. I hope to share with you our latest progress when I come to the conference next time, and I hope to have the opportunity to embark on this investment journey with like-minded people.
Thanks! Thank you so much for the opportunity to speak at such a remarkable event. thank you all!