Core Insights - The equity investment industry in China is showing signs of recovery after three years of stagnation, with increased recruitment demand and improved market sentiment, marking a transition to a new paradigm in the VC/PE sector [1] Industry Transformation - The shift from rapid growth to high-quality development in the equity investment sector is a significant change, with the market size of RMB investments dropping nearly 60% compared to the peak in 2021, indicating a move towards a VC/PE 2.0 era [2] - The evolution of technology investment in China is seen as both an opportunity and a challenge, with the country transitioning from a phase of imitation to one of innovation leadership [2] Alpha Capability Development - The Chinese equity investment market is moving from a "positive beta" to a "negative beta" or "flat beta" state, emphasizing the need for firms to develop "alpha" capabilities to achieve excess returns [3] - Future core competencies for investment firms will focus on foresight in technology trends and application, with a need to identify opportunities amidst uncertainty [3] Strategic Differentiation - Different investment firms are adopting unique strategies based on their inherent strengths, with some focusing on early-stage investments in hard technology projects, recognizing the importance of early positioning in high-potential sectors [5][6] - The concept of "cross-cycle layout" is becoming crucial for firms like Taikang Investment and China Merchants Capital, which emphasize the importance of understanding industry cycles and making informed investment decisions based on growth trends [7]