Exclusive Interview with SONG Xiangqian, Founder of Jiahua Capital: Decoding the Growth Secrets of China's "Patient Capital"
"Once capital leaves the real economy, it's like a ship losing its anchor."
As the economist Joseph Schumpeter argued, capital itself is not the end but a tool to drive creative transformation in the real economy. This famous quote is engraved deep in the genes of Jiahua Capital by Song Xiangqian.
Since the establishment of Jiahua Capital, Song Xiangqian has led the team to invest in a number of well - known national brands in the "quiet but profound" consumer track, such as Dongpeng Beverage, Qiaqia Foods, Chando, Laoxiangji, Babymon, Xiaocaiyuan, Meituan, etc.
In his view, capital should not be a magic trick to turn stone into gold. The numerical increase or decrease in the arbitrage game is only on the surface. The ultimate goal of capital should be to create real output, stable employment, and lasting value for society.
In the current noisy market, many people are still obsessed with chasing short - lived trends or indulging in the digital game of leverage. Some even define the height of success by the speed of capital turnover. Amidst all this, Song Xiangqian has always maintained a rare sense of clarity and determination.
Based on this clarity and determination, his choices often show a steady strength that can transcend economic cycles.
The Reversion of Finance: The Spiritual Reconstruction from the "Arbitrage Illusion" to the "Faith in the Real Economy"
"Once the financial industry becomes the most profitable one, it deviates from its original intention of serving the real economy." Song Xiangqian never hesitates to express his true thoughts. As an investor who has been deeply involved in the capital market for more than 30 years, he has witnessed the expansion and alienation of China's financial industry along the way.
In his view, while the past financial boom promoted economic development, it also gave rise to two concerning industry disorders, which gradually made capital deviate from the origin of value creation.
For a long time, a large amount of capital has been indulged in the "money - making - money" arbitrage game. At that time, a year of restructuring or leveraged acquisition could bring several times the profit for capital. In contrast, investing in the real economy seemed slow and tiring. However, behind this prosperity, Song Xiangqian saw the crisis: neglecting industrial cultivation and the core mission of long - term value creation. This capital game detached from the real economy not only intensified the fluctuations in the capital market but also hollowed out the foundation for the development of the real economy.
As a result, the financial industry became like a castle built on the beach. When the tide receded, it would be clear who was swimming naked.
What worries Song Xiangqian even more is the profit - seeking trend of "undervaluing the real economy". While a large amount of capital and high - quality talents have flocked to the financial, Internet and other fields, the real industries such as manufacturing and consumer industries are facing the dilemma of capital shortage and talent loss. This imbalance in resource allocation not only weakens the innovation drive of the real industries but also makes finance lose the industrial foundation for its survival, forming a vicious cycle of "the more prosperous the virtual economy, the weaker the real economy".
Song Xiangqian calls on that consumption and technology should not be a binary choice.
Under such a vicious cycle, Song Xiangqian classifies the resistance of the financial system in serving the real economy into three aspects: first, capital circulates within the financial system without effectively flowing into the real economy; second, the risk - pricing mechanism fails, and the financing difficulties of private enterprises and small and micro - enterprises are prominent; third, financial innovation deviates from the essence of service, and the over - development of derivatives exacerbates systemic risks.
"Finance must regain its 'people - orientation'." Song Xiangqian has emphasized more than once that this is not just a slogan but requires profound institutional changes. The implementation of this concept is called "the reconstruction of faith" within Jiahua Capital. In Jiahua's unique project evaluation system, investing in areas that can create real GDP, provide stable employment, and meet people's livelihood needs even has a higher weight than short - term financial returns.
"We are not eager to pursue short - term exit returns or rely on the gaming returns from valuation fluctuations. Instead, with the perseverance of long - termism, we use our professional capabilities to accompany enterprises through economic cycles and grow and expand." Song Xiangqian said.
In the capital market where success is defined by speed and leverage, this concept is particularly precious. Song Xiangqian redefines the value coordinates of capital with a nearly simple perseverance: "The ultimate meaning of investment does not lie in the level of short - term returns but in the value it creates for society."
The Persistence in Investment: Anchoring the Necessity - based Track and Being the "Brand behind the Brands"
Opening Jiahua Capital's investment portfolio is like opening a "map of China's people's livelihood": from Dongpeng Special Drink in Guangdong, Laoxiangji and Xiaocaiyuan in Anhui, Babymon and Chando in Shanghai, to well - known brands like Qiaqia Melon Seeds, Aimer, and Meituan across the country.
"Consumption is the ballast stone of the Chinese economy and a solid force to resist cyclical fluctuations. And the consumption of necessities closely related to people's livelihood is the most certain, warmest, and most vital direction in consumer investment." This sentence is the compass guiding Jiahua Capital through market cycles.
His investment philosophy can be summarized in six words: "necessity, high - frequency, and people's livelihood". While the venture capital circle chases new concepts, the Jiahua team studies the consumption upgrade of daily necessities such as oil, salt, soy sauce, and vinegar, focuses on improving the efficiency of the catering and retail industries, and is dedicated to making a bottle of water, a bowl of noodles, and a breakfast healthier, more convenient, and of higher quality. "This investment logic, combined with China's current situation, can support the market changes for a long time."
This confidence does not come out of thin air but stems from his profound insight into the Chinese consumer market over the years.
Globally, China has the largest consumer group and the most mature industrial chain, which supports a consumer market with broad potential. Necessity - based consumption not only has strong anti - risk ability but also contains huge innovation opportunities. "From having enough to eating well, from dressing warmly to dressing beautifully, from meeting basic needs to pursuing a quality life, the demand upgrade of Chinese consumers has never stopped, which provides continuous growth impetus for enterprises in the necessity - based consumption field."
Different from the extensive investment methods of many traditional VC/PEs, Jiahua Capital adheres to the "less but better" investment strategy. "In today's capital market, the least scarce thing is money, and the most scarce things are the professional capabilities to truly understand the industry and empower enterprises, as well as the patience and sincerity to accompany enterprises in long - term growth." Song Xiangqian said.
This in - depth accompanying model is summarized as the "Five Truths" methodology. In the case of investing in Dongpeng Beverage, the Jiahua team spent a lot of time researching the competitive landscape and consumption pain points of the Chinese functional beverage market before the investment, and deeply understood the product advantages and development bottlenecks of functional beverages. After the investment, they not only participated in the board of directors but also got involved in the details of operations such as channel reform, product R & D, and brand upgrade.
The case of Laoxiangji is also typical. At every critical node of Laoxiangji's development from the first contact to its listing, Jiahua Capital was deeply involved. In Jiahua's concept, the value of capital lies in using professional capabilities to help enterprises optimize strategies, integrate resources, and let this compound - interest effect be released faster and more smoothly.
This in - depth accompanying model is consistently applied to the enterprises invested by Jiahua. For example, for the newly invested domestic beauty brand Chando, since the contact in 2021, Jiahua has provided pre - investment empowerment in core aspects such as strategic planning, comprehensive budget management, and organizational construction. They deeply participated in the company's monthly business analysis meetings, identified the key points for quality improvement and efficiency enhancement together with the internal team, and helped the company build an analysis framework to improve digital decision - making ability.
Chando, a domestic beauty brand newly invested by Jiahua Capital
Currently, among the enterprises invested by Jiahua Capital, several have grown into leading enterprises in their respective segments, which has brought it an investment return of more than 20 times. This undoubtedly confirms Song Xiangqian's judgment: the investment strategy of deeply engaging in the real economy and adhering to long - termism can also achieve excellent financial returns.
The Answer to the Times: Let Capital Serve Society
"We are entering an era where 'good people do business'." Song Xiangqian's words are particularly meaningful at present.
As China's economy enters the stage of high - quality development, the market is redefining the value of enterprises. "In the past, enterprises were mainly measured by scale and growth rate. Now, more attention is paid to employment creation, technological innovation, and social responsibility." He defines this change as the reshaping of the value coordinate system.
In Song Xiangqian's view, the Chinese - style "rational capitalist spirit" should have three core dimensions: the rationalization of capital, recognizing the service nature of finance; the long - termization of investment, believing in the compound - interest power of time; and the kindness of enterprises, making business profits and social values go hand in hand.
"It's not difficult to make money, but it's difficult to make it with a clear conscience." He especially emphasizes that enterprises that rely on hard work and honest management should be given due respect. In the current involution environment of excessive marketing and shoddy products, the concept of business for good should be vigorously advocated.
This value is also reflected in Jiahua Capital's investment criteria. They attach great importance to entrepreneurs' "industrial belief" and "long - termism spirit". In other words, they are looking for partners like Dongpeng Beverage, Laoxiangji, Xiaocaiyuan, Babymon, and Chando who can jointly practice long - termism.
In addition, consumer investment has quietly entered the "deep - water area". The past models relying on traffic dividends and capital - driven growth have become ineffective. In the future, success will depend on fine - tuned operations, product innovation, and supply - chain efficiency. Ultimately, those enterprises that are truly rooted in the real economy and focus on products will stand out.
Time is the weighing scale for the value of enterprises, and money is a by - product of doing the right things. In the nearly 20 years of dancing with the consumer industry, Jiahua Capital has also achieved its own growth and transformation.
As of 2025, the funds managed by Jiahua Capital have exceeded 30 billion yuan. With its profound insight into the consumer industry and in - depth value co - creation with enterprises, it has become the top player in the Chinese consumer investment field. Song Xiangqian himself, with his outstanding achievements in the consumer investment field, ranks 3206th on the "Hurun Global Rich List 2025" with a fortune of 7.3 billion yuan, becoming a "new rich" recognized by the capital market.
Even with such achievements, Song Xiangqian still maintains his original intention of deeply engaging in his career. "Our sense of achievement never comes from the expansion of the management scale or the growth of personal wealth but from seeing the continuous growth of the invested enterprises, witnessing the continuous upgrade of the Chinese consumer industry, and realizing the ultimate mission of capital serving society."
The Epilogue: Friends with Time, Guardians of Value
Warren Buffett once said, "The stock market is a mechanism that transfers money from impatient people to patient people."
In the eyes of many, the greatness of Warren Buffett does not lie in how much money he has made but in proving a truth over 60 years: if you keep doing the right thing, time will reward you.
This is also a true portrayal of Jiahua Capital. In the 18 - year investment career, Song Xiangqian and his team have always chosen to be friends with time. They have experienced multiple cycles of the capital market and witnessed the rise and fall of numerous trends, but they have always adhered to the consumer real - economy track. "Whether it's true wisdom or stupid opinion, time will show the final answer." Song Xiangqian said.
Song Xiangqian, the chairman of Jiahua Capital
In the future, Jiahua Capital will continue to deepen the "industry - empowering investment" model. With more professional capabilities and firmer beliefs, it will deeply engage in the consumer channels, provide more systematic support for the invested enterprises, and accompany more high - quality enterprises to grow. "The perseverance in rooting in the real economy and the efforts in empowering the industry will eventually converge into a powerful force to promote the high - quality development of the Chinese economy."
Song Xiangqian is also full of confidence in the future of the Chinese consumer market. He believes that at the critical moment of China's economic transformation and upgrading, consumption, as an important engine of economic growth, has ushered in new development opportunities. With the promotion of the common prosperity policy, the expansion of the middle - income group, and the continuous consumption