B[Commander Capital Chairman Ding Ying: Be wary that AI capital expenditures will not make money. China’s capital market cannot just do “addition”] November 12th. On November 12, the 2026 Private Equity Industry High-Quality Development Forum and the “Huayuan Xingyao·Second Private Equity Huazun Award” award ceremony will be held in Shanghai. Ding Ying, chairman and investment manager of Command Capital, said at the forum that the core of value investing is not the pursuit of growth, but the return on corporate capital and its sustainability. Talking about the AI investment boom, he pointed out that what is more concerning now is not when the bubble will burst, but whether the huge capital expenditure can truly be converted into returns. "If the barriers cannot be maintained, the growth value will be equal to zero." Ding Ying believes that investment should first determine what the company does and whether it has a moat, and then look at the finance and price, rather than looking at the valuation first and then looking for reasons to buy. Buying a stock is essentially buying ownership of a business, not a piece of paper that fluctuates with the market. When talking about the differences between the Chinese and American capital markets, Ding Ying compared "addition" and "subtraction".
He said that the scale of repurchases of S&P 500 constituents in the past 12 months has reached US$1.02 trillion, while the Chinese market will have 116 new listed companies and 31 delisted companies in 2025. The ratio of IPOs to delistings has been above 3:1 for a long time. If only additions are made and no subtractions are made, the quality of listed companies may be diluted. He believes that as the capital market system continues to improve, the market is shifting from "volume price" to "excellent value", and capital return capabilities will become an important fulcrum in the reshaping of market valuation. (Reporter Wu Yuqi)
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