Recently, with the listing of high-tech companies such as Changxin Technology and Guoyi Quantum, the local state-owned capital invested in them has increased dramatically in value. Attracted by the wealth effect, many local state-owned assets rubbed their hands, prepared to do a big job, and even put forward slogans to change “land finance” to “equity finance.” However, ignoring one's ability level, making quick profits, and blindly following the trend of investing may be counterproductive. Technological innovation and industrial upgrading is a marathon. High-tech projects often have a long R&D cycle, large upfront investment, and a high risk of failure. Private capital is discouraged for various reasons. This is an area of “market failure” where state-owned capital should make up for. Hefei State-owned Assets has supported Changxin Storage to break through the DRAM technology monopoly every ten years, and Shenzhen State-owned Assets has supported startups to cross the “Valley of Death” with the Angel Mother Fund. These success stories all confirm that the core value of state-owned assets is “delivering success in the snow” rather than “icing on the cake”; it is to accompany innovation on a long run rather than pursue short-term arbitrage. Standing at a new starting point for high-quality development, local state-owned investment must break out of the impetuous trap of “fast in and out” and “chase the waves”, cultivate fertile ground for local industries with strategic strength, and truly break out of the acceleration and resilience of their own industries.

Recently, with the listing of high-tech companies such as Changxin Technology and Guoyi Quantum, the local state-owned capital invested in them has increased dramatically in value. Attracted by the wealth effect, many local state-owned assets rubbed their hands, prepared to do a big job, and even put forward slogans to change “land finance” to “equity finance.” However, ignoring one's ability level, making quick profits, and blindly following the trend of investing may be counterproductive. Technological innovation and industrial upgrading is a marathon. High-tech projects often have a long R&D cycle, large upfront investment, and a high risk of failure. Private capital is discouraged for various reasons. This is an area of “market failure” where state-owned capital should make up for. Hefei State-owned Assets has supported Changxin Storage to break through the DRAM technology monopoly every ten years, and Shenzhen State-owned Assets has supported startups to cross the “Valley of Death” with the Angel Mother Fund. These success stories all confirm that the core value of state-owned assets is “delivering success in the snow” rather than “icing on the cake”; it is to accompany innovation on a long run rather than pursue short-term arbitrage. Standing at a new starting point for high-quality development, local state-owned investment must break out of the impetuous trap of “fast in and out” and “chase the waves”, cultivate fertile ground for local industries with strategic strength, and truly break out of the acceleration and resilience of their own industries.