By DT @DTINLAC
Let’s See how the Jiangs steals the country’s foreign exchange reserves into their pockets and who is the “white gloves” of the Jiangs in the second season of DT’s BOYU Capital!
【Production by DT Excavator Team of Exposé Revolution】
【BOYU Capital – Season 2】- Dig Deep to the Jiangs’ Pocket
This is a super long story. Let’s start with UBS Group which has been mentioned for many times by Mr. Miles Guo in his livestream broadcasts. However, none of medias have ever reported it. Why? You should know the reason. I first thought that I will be revealing the finance majordomo of the CCP; however, what I found that all so-called party’s assets are actually private properties. That is why I post the BOYU Capital Season 2.
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The UBS Group, the Union Bank of Switzerland or UBS Group AG, is the main channel of money laundering for the CCP. CCP has two so-called Party’s assets majordomos, one is Ren Zhigang, former president of Hong Kong Monetary Authority, and the other one is Hu Zuliu, current director of the UBS. Wow, this is the most important title but deliberately hidden by the CCP that you can’t search for the title anywhere in mainland China.
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Ren Zhigang (Joseph Yam Chi Kwong 1947- ), awardee of the Grand Bauhinia Medal, the Gold Bauhinia Star, and the Justice of the Peace, was born in Hong Kong. His family was from Changping, Dongguan City, Guangdong Province. He served as the first President of Hong Kong Monetary Authority from 1993 to 2009, and president of People’s Bank of China. He was one of few presidents who had only bachelor’s degree. Most of them have master’s degree or even Ph.D. degree. His real title should be the “financial management commissioner.”
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Hong Kong Monetary Authority is the “financial management commissioner’s office.”
Since 2006, he has served as honorary professor in Business School of the Chinese University of Hong Kong. In December 2009, he was appointed as Executive Vice President of China Finance Society. In 2011, he took the post of the distinguished research fellow of Lau Chor Tak Institute of Global Economics and Finance (IGEF) of the Chinese University of Hong Kong. In 2017, he served as an unofficial member of the Executive Council of the Hong Kong Special Administrative Region. In 2019, he was conferred academician of Hong Kong Finance Academy.
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Content is the same as the No.4 tweet above.
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Ren Jinhan, Ren Zhigang’s cousin, was the President of Enterprise Projects and Services Department of America-based Emerson Electric, Asia Pacific Headquarter. He also served as Director for Transport and Commissioner of the Independent Commission Against Corruption meanwhile. His wife is Zheng Kwan Peiying, whose nick name is Irion Butterfly.
Ren Zhigang, the founder of the Hong Kong Monetary Authority and former the Executive Vice President of China Finance Society, has been the President of the Hong Kong Monetary Authority for 16 years.
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Since the establishment of Hong Kong Monetary Authority in 1993, which is equivalent with Hong Kong “Central Bank”, Ren Zhigang has served as its President. During his tenure, Hong Kong experienced many hardships, including Asia Financial Crisis in 1998, Internet Bubble in 2001, and Financial Tsunami in 2008. Ren Zhigang could always help Hong Kong to pass through the difficulties and challenges. Why? He was supported by CCP’s families with huge, gigantic amount of money.
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Ren Zhigang had studied in St. Louis School and St. Paul’s College, and graduated from Hong Kong University in 1970 with the First-Class Honor. In 1971, he started as a director in statistic department in Hong Kong government and was promoted to director of economics in 1976. He was appointed as Administrative Officer, level C staff in 1982, as Deputy Secretary for Monetary Affairs in 1985, and as Director of the Office of the Exchange Fund in 1991. When Hong Kong Monetary Authority was established in 1993, Ren Zhigang served as President until Sep 30,2009.
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Since there has been no effective supervision, the Monetary Authority was like an independent Kingdom where Ren Zhigang was called the “King”- the potentate didn’t need to report and consult anyone else.
Hong Kong is a major channel of money laundering for senior officials’ families of the CCP. So, Ren would never be able get away from this. Now Ren has retired. Hu Zuliu, current assets majordomo for CCP’s families, is another legendary!
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Hu Zuliu, or Fred Hu (1963- ), was born in Xinxiang, Miluo County, Hunan Province. He graduated from Luoyang Institute of Technology, was renamed Henan University of Science and Technology now, in 1982 and majored in Internal Combustion Engineering, received a master degree in Engineering from Tsinghua University, and received a Ph.D. degree in Economics from Harvard University. He has been a professor of Tsinghua University School of Economics and Management and the director of China Center for Economic Research, Tsinghua University since April 1996. He is also the Board Director of Taikang Insurance Group.
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Hu Zuliu is the founder, chairman of the board, CEO of Primavera Capital, non-executive chairman of Yum China Holding Inc. (Yum China owns several leading restaurant brands, including KFC, Pizza Hut, Taco Bell, Little Sheep Hot Pot, Simmer Huang, and COFFii & Joy), Board Director of several listed conglomerates, including Hong Kong Exchanges and Clearing Limited and the UBS Group.
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- Other titles of Hu ZuLiu 1
- Co-chairman of the Asia-Pacific Council of Nature Conservation Association,
- Director of the China Medical Board,
- Member of the Global Advisory Committee of the American Foreign Relations Association,
- Member of the 21st Century Council of the Bergruin Institute,
- Member of China Foundation Advisory Committee, Harvard University
- Member of the Mossavar-Rahmani Institute of Business and Government, Kennedy School of Government, Harvard University
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Other titles of Hu ZuLiu 2
- Member of Center of International Development, Stanford University
- Member of the Jerome A. Chazen Institute of International Business at Columbia University
Co-executive director and professor of the National Center for Economic Research of Tsinghua University
- Professor at the Chinese University of Hong Kong
- Professor, Peking University
- Managing Director, partner, and China chairman of Goldman Sachs
An Economist of the International Monetary Fund in Washington DC
- The Chief Economist of World Economic Forum in Davos
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Other titles of Hu ZuLiu 3
Hu Zuliu has worked for Goldman Sachs from 1991 to 1996 for 13 years, he served as officer of the International Monetary Fund. In 1996 he became the Chief Economist of World Economic Forum in Davos, Switzerland.
Looking at these brilliant titles, this reminded me of Wang Qishan.
Being the managing director of Goldman Sachs? He must have involved in mony laundering with the HNA, and Hainan Cihang Charity Foundation, Inc. (New York).
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Other titles of Hu ZuLiu 4
Hu Zuliu is also a director of the Board of Hong Kong Exchanges and Clearing Limited which is a hidden title by the CCP.
Up to January 14, 2020, directors of the board of the Hong Kong Exchanges and Clearing Limited are following:
1. Li Xiaojia (see photo below) (he is the actual controller of Hong Kong Stock Exchange and this means that he can change the HengSheng index as he desires.)
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Boards of HKEX 2
- Laura May-lung Cha Shih, 史美伦
- Apurv Bagri, 阿博巴格瑞
- CHAN Tze Ching, Ignatius 陈子政
- CHEAH Cheng Hye 谢清海
- FUNG Yuen Mei, Anita 冯婉眉
- Rafael GIL-TIENDA 席伯伦
- HU Zuliu, Fred Hu (a focus of this post) 胡祖六
- HUNG Pi Cheng, Benjamin 洪丕正
- LEUNG Pak Hon, Hugo 梁柏瀚
- John Mackay McCulloch WILLIAMSON 庄伟林
- YIU Kin Wah, Stephen 姚建华
Updated on January 14, 2020.
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It was reported that Hu Zuliu was admitted to Tsinghua University from Miluo County No.1 Middle School at age of 17 and majored in Mechanics, received a Master degree in Engineering of Tsinghua University. After this, he received a national scholarship to go to the US and studied macro economy at Harvard University for his Ph.D. degree.
This is all fabricated. Luoyang Institute of Technology was the college which Hu Zuliu was enrolled, not Tsinghua University. Who made up this mendacious information and what was the purpose?
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Let’s take a look on what Hu Zuliu, the managing director of Goldman Sachs, has done?
In early 2003, Hu Zuliu, the managing director of Goldman Sachs, reported at “Global Investment Market Trends and Opportunities” and said “QFII investment in Shanghai and Shenzhen Stocks Markets should base on optimistic market fundamentals, not just for the appreciation of RMB and the risk of exchange rate speculation could be high.”
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Goldman Sacks believed the RMB is actually undervalued after calculated the “exchange rate equilibrium model” and this underestimation is not a severe but moderate underestimation for 10%-15%. China continue to maintains a trade surplus and foreign exchange supply exceeds the demand and the reserve has exceeded US 350 billion. If the exchange rate is liberalized, the RMB will definitely appreciate.
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Since 2001, people from Hong Kong branch of some companies have looked down on Shenzhen and Shanghai stock markets. Why do they act against it now? Hu Zuliu, managing director of Goldman Sachs Asia, claimed that “most of foreign companies will not enter the stock markets immediately through QFII and Foreign Fund managers will be set back from China’s securities market by all sorts of strict investment constraints of the QFII.
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But the real situation makes him stunned that Goldman Sacks became an active applicant of QFII and began to invest China A-shares market as soon as it got approved.
How could we comment on his inconsistent theory?
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Weird response in the market 1
On July 23, 2003, convertible bonds of the GD Power Development Co., Ltd. can be subscribed. The most attentive investors approved to enter the markets, QFII, were Citigroup Global Markets and the UBS. They were on the list to obtain investment quota. The subscription funds used by two companies exceeded 100 million Yuan and 500 million Yuan, respectively. At the end, the former was allocated 1044 lots with an allocated amount of 1.044 million Yuan, and the latter was allocated 4835 lots with an allocated amount of 4.835 million Yuan.
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Weird response in the market 2
On August 20, 2003, two other reports about the QFII were published. One was that a QFII-subscribed Yufu index Fund during the issuing period became the first open-ended Fund in the QFII. The other one is the Citigroup Global Markets that bought 21.7% share of Shanying Convertible Bonds. This indicated that they believed RMB will appreciate definitely and that was the reason they bought more bonds and less stocks.
Why were they so confident?
（Translator: QFII, Qualified Foreign Institutional Investors）
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QFII invested far more money in bonds than in A-shares. Investment of A-shares was only smog. Although QFIIs published their “first order” to public but their real purpose was to invest bond-type, open-end funds. Choosing much more bonds in their investment indicated QFII having 100% confidence for RMB appreciation. At Hu Zuliu’s calling out for RMB appreciation, QFII must focus on bonds.
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Hu Zuliu’s claims of “not only for RMB appreciation” and “bullish on Shanghai and Shenzhen stock markets” were smog too. It was confusing when Hu Zuliu encouraged mainland foreign exchange reserves enter Hong Kong market. He said that QDII used foreign exchange funds that would not affect Shanghai and Shenzhen stock markets and China’s foreign exchange reserves has exceeded 350 billion US dollars. 10% of it would be enough to support QDII to carry out.
（Translator: QDII, Qualified Domestic Institutional Investors, 合格境外机构投资者）
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QDII not only affected China’s capital market but also had a psychological impact by the price comparison. Hong Kong H-shares were much lower than A-shares. Once QDII started, the psychological impact would expand further. On the other hand, Hong Kong H-shares has risen and many stocks have been doubled. Taking out 35 billion dollars at this time was obviously to support international QDII speculators.
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Why didn’t Hu Zuliu suggest supporting QDII earlier from the end of 2001 to Spring Festival of 2003? It was at the lowest price if they entered at that period of time. Hu Zuliu has been promoting QDII actively since September 2003 and continuously. Only after QFII has finished establishing positions and pushing up prices in April 2003, Hu Zuliu suggested to support QDII with 35 billion dollars. What was his real purpose?
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Please do not forget that Hu Zuliu was the managing director of Goldman Sachs Asia and he was paid with high salary. His high priority work is to serve Goldman Sacks. This is nothing but working for foreign financial institutions disguised by his objective analysis.
From 2003 to 2004, it was also a critical period for Wang Qishan to transfer from Secretary of Hainan Province to Secretary and Mayor of Beijing.
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In Hong Kong stock market, there has been 30% fund from mainland China and H-shares has risen to a new high. Many people expected RMB appreciation and QDII. People in the international markets have this mentality to expect good news and selling at high points. In this situation, Hu Zuliu proposed that the country should support QDII with fund of 35 billion dollars. What was the real purpose? Valuable foreign exchange reserves are national resources and belong to people. If there are problems in B-shares who is responsible for the foreign exchange loss? Do you get it, Chives?
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Hu Zuliu’s intention:
- H-shares has been doubled with highest record in recent years. He still wanted the country to invest $35 billion to Hong Kong Stock Exchange (HKSE). Wasn’t this move to provide opportunity to international investors to sell their shares at high point?
- Or, did this provide Goldman Sacks for its related investment in HKSE?
- Or, this was for Goldman Sacks which held huge assets for these kleptocrats to cash out at high rates.
These are all my speculations. These happened a while ago and it is very difficult to verify now.
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Hu Zuliu graduated from Harvard University. Based on his <Global Competitiveness Report> which has worldwide influence, can we call him an economist? If so, his inconsistent analysis of securities markets was actually for whose interests? This indicated not only in mainland China but also in Hong Kong, there are some economists, in the name of objective analysis, in fact to serve special interest groups.
I am going to post an analysis about how Hu Zuliu worked hard in Primavera Capital for Jiang Zhicheng.
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Hu Zuliu established Primavera Capital and served as Chairman. The Primavera Capital is incredible. Look at the financing plans. I can only find financing data up to 2011.
We have already known that some economists of mainland China represented special interest groups in the name of moving forward and reform. Yet, someone like this Hong Kong economist who worked for international finance institute in the name of objective analysis. Both of these people showed split personalities.
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I take a tumble when I saw Ant Financial Services Group on the list of Primavera Capital’s investment event. China Investment Corp, Yunfeng Capital and a “secret investors” invest Ant Financial Services Group at the same time. Interesting, huh? Use your imagination.
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Primavera Capital invested in Ant Financial Services Group 4.5 billion dollars in April 2016 and 12 billion RMB in July 2015. Did all the money belong to Hu Zulia？ Of course not. The information was not in the fundraising report. How can I find them? Let’s start from Ant Financial Services Group.
It is still very hard to investigate because that was 3 or 4 years ago. But I am an expert now!
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Which is the most abundant and strong capital that can invest all Ant Financial Services Group, Alipay, and Alibaba? It is BOYU Capital which is Jiang Zhicheng’s assets.
Ant Financial Services Group has invested over 100 projects in China. Does this mean that 1.4 billion people work for Jiang Zhicheng, and of course, for those powerful families in Zhongnanhai. Jiang’s family is our focus here.
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Jiang Zemin has a well-known saying that “keep a low profile and make a fortune.” His family has been accumulating fortune wealth like crazy. From Alibaba to 100-billion pharmaceutical factories，Jiang Zhicheng, the first grandson of CCP’s former leader Jiang Zemin has identified another way to made a fortune long ago. Through private equity fund raising, he has taken over many superior assets domestically. In 8 years, BOYU Capital transformed the political power of the Jiangs into a huge amount of business wealth.
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Jiang Zhicheng graduated from Harvard University in 2009 and then he entered into the investment banking, Goldman Sachs. Nine months later in 2010, Jiang Zhicheng has established his own private equity – BOYU Capital in Hong Kong.
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When Jiang Zhicheng established his private equity at age of 25 in 2010, he used his background to do so. A few months later in early 2011, three famous private equity partners formed BOYU Capital. These three partners had a combined over 50-year experiences which was twice of the age of Jiang Zhicheng then. They actually felt honored to be involved in BOYU.
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The first-stage financing of BOYU Capital (in 2011) were from the magnate, Li KaShing Foundation and Temasek Holdings Pte. Ltd., and the Singaporean sovereign-wealth fund. Since then, BOYU Capital has been attracting attention from the investment community.
Li Ka-shing and He Jing, wife of Lee Hsien Loong, Prime Minister of Singapore, kneeled down to Jiang Zhicheng in 2011.
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BOYU Capital’s office is located at the 15th floor of Hutchison building, Central Hong Kong, and its partners registered a number of shell companies in Cayman Islands, the heaven of tax evasion. Meanwhile, they have been licensed by the US Securities and Exchange Commission (SEC) as an “investment consultant”.
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There are four affiliated companies with the name of BOYU registered in SEC. They are:
- BOYU Capital Management Limited
- BOYU Capital Investment Management Limited
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- BOYU Capital Investment Management Co., Limited
- BOYU Capital Group Management LTD.
These four private equity funds own a total of 4.1 billion net assets. They are cash assets!
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These four companies hold each other’s shares as well as the shell companies under partners’ names. Outsider would be very difficult to find out who is the real holder of BOYU Capital – that is the real shareholding of Jiang Zhicheng.
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BOYU’s moto is “raise fund, cash out, and leave.” In the private equity community, if you can double the capital in 5 years, you are successful. While the investment profit rate of BOYU is surprisingly high.
The earliest investment of BOYU financed 50 million dollars for Jack Ma, the founder of Alibaba, to buy back his company shares from Yahoo. BOYU played a leading role in this deal and Jiang Zhicheng met Jack Ma in person.
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Before Alibaba was listed in New York, BOYU cased out of $87 million dollars by reducing its holdings. Its shareholdings has reached to 935 million dollars (0.5% shares), appreciated more than three times comparing to original price.
BOYU, subsequently, participated in financing projects of multiple companies, including high-tech, biopharmaceutical, banking and retail etc. which has infiltrated all areas of domestic capital markets.
In layman terms: I just want to take all your money and you’d better follow my rules.
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Cango Inc., a China automobiles financing services company, was listed in New York Stock Exchange in July 2018 and DiDi Taxi, subsidiary of Tencent, is the principal shareholder. Just four months before listing, BOYU was included in a few strategic investors of Cango Inc.
iQiyi, a subsidiary of Baidu, was listed on NASDAQ in March 2018 and BOYU was involved in one of financings in February 2017.
Some investment projects of BOYU are here.
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How BOYU Capital makes money is not because its strategies in investing but its “power”. They earn money by buying at low price and selling at high price. The end result is “cutting chives” (Translator: Chinese retail investors call themselves ‘chives’ which means their investment funds always be robbed by powerful institutions time after time.)
For example, four substantial shareholders of the SF-Express planned to cash out soon after published its annual report on April 3rd, 2019, two years after SF-Express backdoor listed in 2017. More than 10 thousand retail investors who has bought its stocks in 2017 became so called, ‘chives’ in this.
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Those stakes offloaded by these 4 shareholders were initially privately raised and the price of these initial shares was very low. BOYU became one of the four major investors of SF-Express through its two absolutely controlled companies, China Development Bank Ningbo branch and Oriza Holdings.
The estimated cost of SF-Express shares was only 9.13 Yuan while the lowest price of SF-Express in past 6 months was 28.51 Yuan.
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In another word, even SF-Express share price dives to 50% or 80%，BOYU can still earn a lot of money in the process of arbitrage.
‘raise fund, cash out, and leave’ is a common means to make fortune.
I’d like to recommend this post to those mainland ‘chives’ who invest China stock market. You always say you love your country and the party, do you still want to be ‘chives’ all your life?
Retail investors want to earn money. You need to ask yourself you share their last names.
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CDB (China Development Bank) BOYU Investment Management Company Limited holds 58.7273% shares of CDB Ningbo branch and this means Jiang Zhicheng is the real boss of CDB Ningbo branch. Other shareholders of the CDB BOYU have been flattering Jiang Zhicheg and sending money to please him.
CDB Ningbo Logistics Partnership Limited was established on August 8, 2013 and registered in Markets Supervision and Management Bureau of Beilun District, Ningbo City.
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Four shareholders of CDB Ningbo Logistics Partnership Limited:
- CDB BOYU I Fund (Shanghai) Equity Investment Partnership
- CDB Capital Corporation Ltd.
- Shanghai DongZhi Jiefei Investment consulting Co., Ltd.
- CDB Kai Yuan Capital Management Co., Ltd.
My dear‘Chives’, are you woke?
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‘Party of Princelings’, the second generation of the CCP powerful families plays a key role in finance, energy, national security, telecom, media etc. And in high-tech, internet, biotechnology and real estate etc. new fields, they won’t let any new opportunity slip away. None of domestic or international large private equity funds are able to duplicate China’s BOYU model that has participated repeatedly in large financing projects and guaranteed high returns at the same time.