Private celebrity - Zhao Danyang
Zhao Danyang  He graduated from Xiamen University with a Bachelor of
Engineering. Abroad in 1994, engaged in investment and trade, to enter the domestic
securities industry in 1996, on risky investments. After joining the Guotai Junan
(Hong Kong) Company, responsible for managing the assets entrusted by the client.
Zhao Danyang of 2002 began organizing the &quot;Santa Claus China Growth
Investment Fund&quot;, in January 16, 2003 and began investment operations
official placing. Zhao Danyang also serves as the deep now SDIC Santa Claus (China)
Investment Adviser Capital Trust Investment Officer.
Zhao Danyang of &quot;Pure Heart China Growth Investment Fund (Pure Heart
China Growth Investment Fund)&quot; The founder of the
&quot;Godfather of Chinese private equity,&quot; said. Recently, he has
zero one hundred U.S. dollars 2.11 million competition to obtain and Warren Buffett
(Warren Buffett) lunch opportunities. According to the Associated Press reported that
Warren Buffett charity lunch auction by Zhao Danyang bid, bid the highest ever.
Zhao Danyang exactly what kind of people?
Most of his time is spent on research on listed companies. He said that he is skeptical
eye to study the financial statements of listed companies, hoping to see through things
on paper. Actual operating conditions of the listed companies, cash flow and return on
capital is the focus of their attention to three.
Zhao Danyang of a close friend told financial weekly newspaper reporter,
&quot;Old Zhao previously held a company, know the industry is not easy to do,
but also to deal with all manner of fraudsters. Invest in him after the performance in
judging the true and false aspects of the company, has its own set. &quot;The
recall a few close friends on this thing.
&quot;In the past, Old Zhao to research this company, the person allowed to
enter. He went to Tianjin Tax view the amount of electricity each month this company.
When he found such a big company only on the amount of the monthly electricity
Baidu when they go home. From this point, he suspected that the company is a liar.
&quot;the person said. &quot;Old Zhao value in judging the work of the
company has done a very careful: In 2001, in deciding whether to buy shares of a
particular Gaosugonglu before, he personally went to the months of toll stations, the
number of traffic flow in order to Guancha the listed companies in the real operational
Dongguan Securities chief analyst Lida Xiao and Zhao Danyang a few more side of
the edge. Li Daxiao believe that we have the time to establish trust, Zhao Danyang
has liquidated all of its A-shares of the trust, courage. Zhao Danyang now too early to
draw a conclusion, his future remains great plasticity. &quot;This
year&#39;s A shares lifted the market value of shares in circulation in 2007 will
account for 35% of the overall decline in valuation is very possible to see space may
be an accurate forecast. This market, people who have survived Characteristics: The
value investor Warren Buffett that survive, such as frequent operator Soros also
survive. Zhao Danyang not a bad idea. &quot;
Investors on the innocence of a child, this year was a hard year. Compared with any
relevant indices, we have lagged far behind. Here, we apologize.
Innocence of a child in Hong Kong this year, the weighted rate of return of about 13%,
the Hang Seng index rose 38.06 percent year on year, China Enterprises Index rose
54.32%; innocence of a child in Hong Kong over the past five cumulative increase of
Shenzhen International Trust and Investment ? Santa Claus (China) Capital Trust
annual weighted yield of about 48%, year on year increase of 96.7%, the Shanghai
index; cumulative increase over the past four years, about 371%;
Shenzhen International Trust and Investment ? Santa Claus investment philosophy
Capital Trust annual weighted rate of return of 47.37%;
Shenzhen International Trust and Investment ? Santa Claus (China) 2 Capital Trust
cumulative weighted yield of about 22.12%;
China Ping ? PUREHEART grow a cumulative weighted Capital Trust 49.25% yield;
Ping ? PUREHEART China Growth Capital Trust II weighted rate of return of
Why is this the case?
Time back in 2002, when Hong Kong was not yet out of the 97 financial turmoil, real
estate and stock market are very low. The Hang Seng index was about 10000, H share
index at around 2000, we have established in Hong Kong Pure Heart China Growth
Fund. In early 2003, based on China&#39;s fundamentals, we believe that H
shares are expected to challenge the next 10000 years (see related media), all that is
In early 2004, the mainland A-share market has fallen by nearly three years, the
systemic risks have been released, we and the establishment of Santa Claus deep
cooperation with China International Trust and Investment 1. May 25, 2005, A shares
of 1060 points, also based on China&#39;s strong fundamentals, we believe that
A shares over the next three to five years to reach 3,000 to 5,000 points (see related
By the end of 2006, in a letter to investors, we talk about &quot;ample liquidity
to the market again and again to a higher position. 2007, the most important thing we
still risk control, some at the right time valuation of high stock, we will consider cash.
&quot;to today, H shares and A shares have been over the scope of our
understanding, we have 10,000 points in H shares, A shares of 3500 points to achieve
our earnings. Looking back, we prematurely out. Index of top and bottom will always
be a mystery. Today, on our ability to invest, has been found not only meet our
investment criteria and has sufficient margin of safety of investment targets. The near
future, the market may be strong for so long, after careful consideration and
communication, and two trust companies, the innocence of a child as a consultant for
all trust will be wound up as soon as possible. Investment amount will be returned to
investors, to facilitate future investment opportunities for investors to grasp freedom.
Recalling the innocence of a child&#39;s performance over the past five years,
we do not have an investor losses. Santa Claus is a hedge fund in Hong Kong, our
investment is not a reference index. Our goal is simple, long-term to achieve HIGH
AND HIGH. Not appropriate to make an analogy, is to the end of each year than the
previous year with positive returns. Long term investment, this is a challenging task.
In the premise of avoiding risks, made some positive returns, as the number of returns,
we can only thankful state of mind, decided by God. Hong Kong Fund established in
2003, our first part of this booklet was written:
Investment philosophy - the art of survival
First of all the advantages of the Fund is not reflected in the period of time, how much
money a stock, but also at the continuing ability to control risk. Quantify the degree of
risk is a measure of fund managers sign of the degree of specialization. In the
investment community, &quot;live&quot; is always first. But for
professional investors, the discussion of the risks of unilateral measure is
The core investment is to determine the risks and benefits of symmetry. Any
investment in risky assets are available, as long as there is sufficient income
compensation. Investment Research&#39;s core purpose is to identify the risk -
benefit relations between the symmetry. Around the symmetry can be extended to all
areas of investment: equity risk and pricing risk and compensation insurance assets,
the pricing of mortgage bonds, futures, options, derivatives pricing.
A major aim of professional investors is to find the risk - benefit relationship of the
deviation, when the market due to various reasons why our research subject at risk -
benefit when the Fei symmetry Dingjia relations, that we obtain above-market profit
The most common example, look below the market average price-earnings ratio
below the stock - the average price-earnings ratio according to the level of trading
positions to protect, is to use the principle that the simplest approach. But as the Fund,
as professional investors, we need a greater range of considerations:
1, the current average price-earnings ratio of the market&#39;s overall level of
2, the level of the company&#39;s stock price-earnings ratio reasonable?
3, PE indicators to reflect the company&#39;s internal risk?
4, is there a better risk - earnings measure means?
We will always adhere to our philosophy of existence.
After 2007, Santa Claus will be more understanding: What kind of company is worth
a long-standing, what kind of company can only hold phase; self-fear and greed,
macroeconomic and inflation. We Xuyong a lifetime to perfect the system of
Santa Claus, frank with you.
Zhao Danyang, general manager of Santa Claus
End of the year 2007
Zhao Danyang a letter to investors
A share in the farewell year later, on Jan. 16, 2009, Zhao Danyang site in the
innocence of a child has issued &quot;a letter to investors.&quot;
Different from a year ago, in this letter, Zhao Danyang of the Chinese stock market
showed an unprecedented confidence. He believes that in time this year, A-share
market is experiencing dramatic decline is rare, but the stock market bubble has
2008, China has too many things, finally passed in 2009 will be a year full of hope.
Here, Santa Claus wishes to all investors: Happy New Year! Good health! Good luck!
2008 Santa Claus Fund investment return of Hong Kong, -18.84%, the Hang Seng
Index fell 48.3% over the same period, China Enterprises Index down 51%. Absolute
returns of view, we apologize.
Back to the stock market, the Shanghai index up 07 places from 6124 fell to the
lowest point of 1664 points, down 72.83 percent, the highest state-owned enterprises
fell from 07 points down to the lowest bit position 20 609 4792 points, down 76.75
percent. Historically, mainstream market in a year&#39;s time, produce such a
huge drop is rare. On today&#39;s market, the stock market bubble has basically
washed, the stock market will depend on the future trend of future economic
1980, former Federal Reserve Chairman Volcker to raise interest rates to 20%, the
world&#39;s hyperinflation has finally been returned to the magic bottle plug,
the global economy has entered a period of 20 years of low inflation and high growth
period, especially into the nineties, the Internet greatly improves the efficiency of the
global human society, labor productivity, so that more people around the world share
of global economic growth. United States, Europe, Japan, China, Russia, India is no
longer a separate economy, interaction between the global economy into the era of
2000, the U.S. economy into the peak of the Internet bubble burst in the United States
into recession. Greenspan to save the U.S. economy in 2001 drastically cut interest
rates again after 9.11, so in 2003 fell to 45-year U.S. interest rates low, the location of
the 1% spent a year and a half, causing the U.S. housing bubble, buried Under the
sub-debt crisis of the seed. The United States today, the real question is, over the past
20 years a large number of manufacturing and services transferred to China, India,
Internet and telecommunications bubble after the U.S. innovation is not yet keep up,
for the time being did not become a new industry, while real estate and finance only in
the low interest rates for the time being and prosperity, can not serve as long-term
support for leading industry throughout the country. Today, the U.S. government and
the family&#39;s assets are liabilities on the balance sheet too much, need
&quot;to leverage&quot; cuts debt ratio, more importantly, industrial
hollowing-out Zaocheng the business profit and loss and family frequent damage. If
the balance sheet of the financial turmoil is the amendment, that the recession is the
consumer business and family income statement of the amendment. Unless the United
States shortly to form a huge new industry total, or such amendment will be a long
process. Looking back, Greenspan is just bad luck, if not the United States in recent
years, innovation has not kept up, the world will be another evolution.
China joined the WTO in 2001 productivity has been greatly after the release of the
popularity of Internet communications technology to China to undertake the process
of benefit transfer of global manufacturing. As the renminbi and the U.S. dollar in real
terms in the category linking patterns  (Note: Class hook shape: the yuan against
the U.S. dollar exchange rate fluctuations in a certain range, but is still of the linked
exchange rate), in export industries account for an increasing proportion of GDP is
high, click &quot;Mundell triangle&quot; theory  (Note:
&quot;Mundell triangle&quot; theory: the independence of monetary policy,
free capital flows and exchange rate stability in the three policy goals can not
simultaneously achieve), the difficulties of China&#39;s central bank operations
In 2005, the RMB appreciation is expected to gradually become a global consensus
that Japan&#39;s history as a mirror of the U.S. dollar&#39;s low interest
rates and the depreciation of the pressures that have driven the global capital wants to
get into China, the share of China growth. With the rapid growth of exports, more
foreign exchange reserves soaring performance. So much money into China, the main
outlet for that real estate and stock market, form a perfect bubble formation in China.
If the above reasons caused the increase in the quantity of money, that the Olympic
Games birth of national confidence and pride that brought about the formation of the
money multiplier, multiplying the two results is human madness. History is always a
striking similarity to the pain of China today is in the process towards market
economy required a lesson, like 97 for most people in Hong Kong will no longer be
bought over-overdraft buy shares. As the former Bank of Japan governor said, looking
back the economic bubble in Japan in 1985-1989, even if the re-interpretation, it is
difficult to completely avoid.
Compared to the United States, China, much better fundamentals, first of all liabilities
of the Government and the families Shuaibu Gao, especially domestic part, the high
savings rate to the balance sheet with ample cash Dongtian approaching, have cash to
spend the winter. More importantly, China is still the world&#39;s most
competitive industry in the region, that China&#39;s future profit and loss
account is still the most strong in.
Back to the A shares and H shares, we believe that in 2009 China&#39;s stock
market will form an important bottom. Our task today is to look for the next ten to
twenty years in China to represent China in the global competition of enterprises, the
nature of investment capital is allocated, we have the core of the capital allocated to
the most competitive, most efficient companies, thereby contributing to the
community development. Interest rate seasons of nature with students, each a harsh
winter will be eliminated for those within physical survival of the species is not
unhealthy, fallen trees around each tree will give birth to more powerful Emerging
Artists - Nature Select (Natural Selection) is to promote social progress and the
eternal nature and power. Who is the future of Wal-Mart, Toyota, Microsoft, Procter
&amp; Gamble ... ... Peter Lynch to find life a lot Tenbaggers  (Note:
Tenbaggers: this concept is by investment guru Peter. Lynch suggested that the price
is up 10 to times the stock), who are our future can earn ten times the company?
Everyone&#39;s life, there is always a number of significant opportunities and
challenges in these important turning point, how to deal with and face will have a
decisive impact on their lives, together we share Sir John Templeton investment
Bull market because of pessimism born, to grow because of doubts Cross, because of
optimism and mature as excited ecstasy death. When filled with extreme pessimism is
the best buying opportunity, but when filled with great optimism, it is the best
opportunity to sell. When the market was extremely depressed, do not waste time
worrying about your position or contraction losses increase. Do not only know how
everyone else on the market defense, the contrary, you should take the attack to find
one after another was defeated in the value of shares.
January 2, 2008 A stock liquidation on the eve of the trust, we addressed a letter to
investors, raised several questions: What kind of company is worth a long-standing,
what kind of company can only hold stage; fear and self- greed, macroeconomic and
inflation. The end of 2008, we have found most of the answers, the other part is still
confusing, and we look forward to in 2009 and investment guru Warren Buffett meet,
get confirmation. We will use a lifetime to perfect our investment theories.