>>> THIS WOMAN IS A CO-OWNER OF A CHINESE INVESTMENT COMPANY DECIDING WHETHER OR NOT TO PROVIDE FUNDING TO THIS TECH START-UP. >> IN CHINA NOW, 12,000 START-UPS ARE BEING CREATED EVERY DAY. THEY ARE SPRINGING UP ONE AFTER ANOTHER IN NEXT-GENERATION INDUSTRIES, AIMING FOR A STOCK LISTING. AND FLOWING INTO THESE VENTURES IS AN ESTIMATED $17 TRILLION U.S. IN PERSONAL ASSETS. IT'S A SURGING INVESTMENT BOOM THAT'S TAPPED INTO THE POCKETBOOKS OF 1.4 BILLION PEOPLE. FUELING THE TREND ARE NEW PRIVATE-SECTOR INVESTMENT COMPANIES, WITH SOME INTERESTS AS HIGH AS 30% PER ANNUM, THEY ARE MAGNETS FOR MONEY FROM WEALTHY INDIVIDUAL INVESTORS. >> MOVING ALL OF THIS CAPITAL ARE NEW FINANCIAL SERVICE BUSINESSES. WHICH USE THE INTERNET TO GATHER MONEY. THIS COMPANY PROMISES APP ANNUAL INTEREST RATE OF 9%. GUARANTEEING THE PRINCIPAL INVESTMENT AND INTEREST. BUT IT'S NOT ALL SMOOTH SAILING IN THIS RED-HOT BOOM. [ CRYING ] >> CHINA WANTS TO SHED ITS LABEL AS THE WORLD'S FACTORY. AS IT PURSUES NEW GROWTH INDUSTRIES. WILL THE PERSONAL ASSETS OF 1.4 BILLION PEOPLE TRIGGER THE COUNTRY'S NEXT ROUND OF GROWTH? NOW CHINA IS CONDUCTING AN EPIC EXPERIMENT. UNITING THE PUBLIC AND PRIVATE SECTORS. WE FOLLOW THE TIRELESS DESIRE FOR GROWTH OF THE GREAT DRAGON. >>> THIS IS THE PUDONG NEW DISTRICT IN THE CITY OF SHANGHAI, KNOWN AS CHINA'S FINANCIAL CAPITAL. IT IS SAID THAT FINANCIAL DEALINGS IN PUDONG EXCEED $270 BILLION A DAY. THE DISTRICT IS LIKE A PUMPING HEART, INJECTING THE LIFE BLOOD OF MONEY INTO THE CHINESE ECONOMY. SOME 6,000 FINANCIAL INSTITUTIONS, INCLUDING MAJOR STATE-OWNED BANKS JOCKEY FOR SPACE AND BUSINESS IN THIS DISTRICT. THEIR FINANCIAL CLOUT CLIMBING AS PUDONG'S PROFILE GROSS. THE NEW FORCE EMERGING IN PUDONG ARE PRIVATE-SECTOR INVESTMENT COMPANIES. A NUMBER OF INVESTMENT COMPANIES GATHERED ON THIS DAY TO LOOK FOR PROMISING START-UPS IN THE FIELD OF VIRTUAL REALITY. >> VIRTUAL REALITY IS EXPECTED TO EXPLODE INTO A $70 BILLION INDUSTRY WORLDWIDE WITHIN FOUR YEARS AND INVESTMENT COMPANIES ARE ALL ANGLING FOR A PIECE OF THE MARKET. MANY OF THE OWNERS ARE IN THEIR 20s AND 30s WHO COLLECT THEIR INVESTMENTS IN THE MILLIONS OF DOLLARS. AND THEY'RE ALL VYING HARD TO PUT MONEY INTO UP-AND-COMING VENTURES. >> THE HOTTEST ITEM SHOWN AT THIS EVENT IS A VIRTUAL DATING GAME. INVESTMENT COMPANY CO-OWNER PAN XIAOXI IS ALWAYS LOOKING FOR A PROMISING START-UP. PAN XIAOXI IS A RARE BREED IN THIS FINANCIAL HUB WHERE FEW WOMEN HOLD SENIOR POSITIONS. SHE HAD A STRONG DESIRE TO CONTRIBUTE TO CHINA'S TREMENDOUS GROWTH. FOUNDED IN 2012, THE BUSINESS WAS NAMED BRILLIANT CHINA. THE FIRM EMPLOYS 50 PEOPLE. THEY INVEST MILLIONS OF DOLLARS IN HIGH-TECH COMPANIES AND PROFIT BY GETTING THOSE COMPANIES LISTED ON STOCK EXCHANGES. THEIR FINANCIAL BACKING COMES FROM THE WEALTHY. RICH INVESTORS AND BUSINESS OWNERS FOR EXAMPLE. THE HUAHUI GROUP STARTED WITH $45 MILLION IN CAPITAL, IT'S TRIPLED IT TO $136 MILLION. PAN SAYS SHE IMPOSES AN ANNUAL INVESTMENT YIELD THRESHOLD ON HERSELF OF 30%. TODAY, SHE'S HAVING A MEETING WITH A CO-OWNER, WHO IS PROPOSING AN INVESTMENT IN A TOP-OF-THE-LINE TILE MANUFACTURER. >> PAN PAYS ATTENTION TO ONE FACTOR MOST OF ALL WHEN SHE INVESTS, WHETHER A COMPANY HAS HIGH GROWTH POTENTIAL OR NOT. THE COMPANY SHE'S LOOKING AT MAY BE STABLE, BUT SHE WON'T INVEST IN OLD INDUSTRIES THAT GENERATE LOW RETURNS. SHE'S ONLY INTERESTED IN HIGH-RISK, HIGH-RETURN INVESTMENTS. SHE'S DECIDED TO GIVE THIS VENTURE FURTHER STUDY. THE DESIRE OF THE CHINESE GOVERNMENT TO SEARCH FOR NEW AVENUES OF GROWTH IS BEHIND THE COUNTRY'S INVESTMENT BOOM. CHINESE LEADERS WANT TO MOVE FROM MANUFACTURING THAT GROWTH TO INNOVATION. TURNING THEIR NATION INTO A SELF-INNOVATING ECONOMY THAT WILL CREATE CUTTING-EDGE TECHNOLOGIES AND BUSINESSES. TO DO THAT, THE GOVERNMENT HAS DESIGNATED 10 GROWTH AREAS IN WHICH CHINA WILL DEVELOP CORE, NEXT-GENERATION INDUSTRIES. >> HIS STRATEGY HAS LED TO ISSUES SURROUNDING THE FUNDED NEEDED TO FOSTER GROWTH INDUSTRIES. INVESTMENT FROM STATE-OWNED BANKS AND OVERSEAS INVESTORS FUELLED CHINA'S ECONOMIC GROWTH IN THE PAST. THAT FUNDING FLOWED INTO STATE-OWNED ENTERPRISES AND JOINT VENTURES. REVVING UP THE COUNTRY'S MANUFACTURING ENGINE. HOWEVER, THAT ENGINE HAS SLOWED DOWN, DECELERATING FOREIGN INVESTMENT. AND STATE-OWNED BANKS HAVE REACHED THEIR LIMIT JUST TRYING TO SUPPORT EXISTING INDUSTRIES. THAT'S WHY THE GOVERNMENT IS FOCUSED ON THE ESTIMATED $17 TRILLION IN PERSONAL ASSETS HELD BY CHINESE CITIZENS. THE PROBLEM IS HOW TO GET THAT MONEY TO THE GROWTH INDUSTRIES. GOVERNMENT OFFICIALS CAME UP WITH A NEW IDEA. CHANNEL THE MONEY BY INCREASING THE NUMBER OF PRIVATE-SECTOR INVESTMENT COMPANIES. WHICH HAD BARELY EXISTED UP TO THEN. THEY ENACTED A NEW LAW TO ENCOURAGE THE ESTABLISHMENT OF INVESTMENT FIRMS. AND UNLIKE MOST ADVANCED NATIONS, CHINA DIDN'T STRICTLY REGULATE FINANCIAL INSTITUTIONS. GRANTING THEM CONSIDERABLE LEEWAY AND FREEDOM. AS A RESULT, THE NUMBER OF INVESTMENT COMPANIES INCREASED RAPIDLY FROM 2013. NOW IT'S ESTIMATED THERE ARE MORE THAN 22,000. THE GOVERNMENT ALSO BOOSTED THESE FIRMS' INVESTMENTS BY GIVING THEM PREFERENTIAL TAX BREAKS AND OTHER INCENTIVES. IN RESPONSE, INVESTMENT COMPANIES BEGAN PILING FUNDS INTO START-UPS. THESE INVESTMENT FIRMS NOW HOLD THE KEY TO THIS NEW POSSIBLE DRIVER OF GROWTH FOR CHINA. >>> THE NEXT TIME WE LINK UP WITH PAN XIAOXI, SHE'S MAKING A MOVE TO INVEST IN THE VIRTUAL DATING GAME START-UP SHE SAW AT THE EVENT. THE COMPANY HAS BEEN IN BUSINESS FOR ONLY TWO YEARS. VIRTUAL REALITY IS RELATED TO THE 10 BIG-GROWTH INDUSTRIES DESIGNATED BY THE GOVERNMENT. IT'S AN AREA PAN IS FOCUSED ON. BEFORE INVESTING IN A COMPANY, PAN ALWAYS MEETS THE TOP MANAGEMENT. SHE WANTS TO MAKE SURE THEY REALLY DO HAVE CONFIDENCE IN THEIR TECHNOLOGY. >> PAN LIKES THE FACT THAT THESE ENTREPRENEURS DID NOT LOSE THEIR CONFIDENCE IN THE FACE OF HER CHALLENGE. >> PAN STUDIED OVERSEAS AND WENT TO GRADUATE SCHOOL IN THE UK. BUT SHE MAJORED IN ART. AND LEARNED ABOUT INVESTMENT ON HER OWN. >> THIS IS ONE OF PAN'S WEAPONS FOR HER INVESTMENT ACTIVITIES. THE NETWORK OF 600,000 MEMBERS OF THIS RETURNEE ASSOCIATION. THE CHINESE LEADERSHIP HIGHLY REGARDS YOUNG PEOPLE WHO HAVE STUDIED ABROAD, CONSIDERING THEM THE NEW DRIVING FORCE THAT WILL SPUR ENTREPRENEURSHIP AND INNOVATION. PAN SAYS THAT THE HEAD OF ONE OF THE ASSOCIATION'S BRANCHES OVERSEEING SOME 20,000 MEMBERS, SHE'S GOTTEN MANY OF HER CLIENTS AND INVESTMENT TARGETS FROM THIS NETWORK. THE BUSINESS OF INVESTMENT IS DRIVEN BY THE UNSEEN POWER OF PERSONAL CONNECTIONS UNIQUE TO CHINA. >> CHINA'S PERSONAL ASSETS ARE POURING INTO GROWTH INDUSTRIES THROUGH VARIOUS TYPES OF NEW INVESTMENT COMPANIES. A NEW FRONTIER FOR SECURING THESE PERSONAL ASSETS IS THE BUSINESS OF INTERNET FINANCE. THE BUSINESS HAS EXPLODED SINCE IT FIRST APPEARED A FEW YEARS AGO. RIGHT NOW, ACROSS CHINA, MORE THAN 2,000 COMPANIES ARE MOVING NEARLY $90 BILLION. RETURNS ARE HIGH. AND CAN BE UP TO 13% ANNUALLY OR MORE. PERSONAL INVESTORS HURT BY THE VOLATILITY OF THE STOCK MARKET ARE STAMPEDING TO THIS BUSINESS. >> ONE COMPANY THAT HAS >> ONE COMPANY THAT HAS ATTRACTED ATTENTION IS A PIONEER OF INTERNET FINANCE, IS LOCATED IN THE FINANCIAL HUB OF PUDONG. >> RONGDAO WANG IS BEING FLOODED BY DELEGATIONS FROM AROUND THE COUNTRY WANTING TO SEE ITS OPERATIONS. ON THIS DAY THEY'RE WELCOMING A GROUP OF BRANCH MANAGERS FROM CONVENTIONAL BANKS IN PUDONG PROVINCE. RONGDAO WANG IS BEING DRIVEN BY THE VIGOR OF OUT. IT'S AVERAGE AGE OF EMPLOYEES IS 29. THEIR SELLING POINT IS SPEED THEY CAN ATTRACT MONEY VERY FAST. THEY POST INFORMATION ON THE INTERNET ON COMPANIES THEY'VE PREVIOUSLY VETTED. USUALLY, THEY CAN COLLECT FINANCING RELATIVELY EASILY FOR LOANS IN THE $10,000 UNIT RANGE. IN THIS CASE, THE ANNUAL RETURN IS %. REPAYMENT COMES IN 12 MONTHS. PLUS THE ORIGINAL INVESTMENT AND THE INTEREST ARE 100% GUARANTEED. THEY ARE SEEKING INDIVIDUAL INVESTMENTS TOTALLY $14,000. AS SOON AS THEY START PROMOTING A COMPANY, THEY IMMEDIATELY BEGIN BRINGING IN THE MONEY. THEY ARE COLLECTING MONEY HAND OVER FIST. EIGHT PEOPLE INVESTED. IT'S RARE FOR THE FINANCING TO TURN SOUR. ONLY ABOUT THREE CASES IN EVERY 1,000. IN THOSE INSTANCES, RONGDAO WANG MAKES UP THE LOSS. THIS TYPE OF LOAN BUSINESS IS REGULATED IN MANY OTHER COUNTRIES. IN CHINA, ANYONE WITH A SMARTPHONE CAN EASILY PARTICIPATE IN THESE TRANSACTIONS. >>> THE MONEY BEING RAISED IN >>> THE MONEY BEING RAISED IN THIS WAY WILL BE LENT AS FINANCING TO COMPANIES IN GROWTH INDUSTRIES. AT 2% COMMISSION FEE IS ADDED ON WHEN THE MONEY IS PAID BACK. THAT'S RONGDAO WANG'S PROFIT. CONVENTIONAL FINANCE COMPANIES CAN SECURE FUNDING IN A MONTH. BUT RONGDAO WANG CAN DO IT IN A WEEK. OR EVEN JUST TWO HOURS. IF IT'S THIS SPEED THAT ALLOWS RONGDAO WANG TO OFFER SMALL LOANS TO MANY COMPANIES AND THUS FUEL ITS OWN DRAMATIC RISE. ZHOU HAN IS THE COMPANY'S FOUNDER. ONCE A CHIEF FINANCIAL OFFICER FOR A LARGE MANUFACTURER, ZHOU LEARNED ABOUT THE DIFFICULTIES SOME COMPANIES WERE HAVING AND PROMPTED HIM TO ESTABLISH RONGDAO WANG IN 2009. >> THEIR TARGETS ARE PROMISING SMALL-TO MEDIUM-SIZED COMPANIES. >>> NOW MORE THAN 2,000 COMPANIES ARE ENGAGED IN ONLINE FINANCING. WHICH HAS BECOME A DRIVING FORCE IN THE WORLD OF INVESTMENT. THE CHINESE GOVERNMENT IS PLACING EVER-GREATER EXPECTATIONS ON THE POWER OF THESE COMPANIES TO MOBILIZE CAPITAL. GIVEN ITS LEADING POSITION IN THE FIELD OF INTERNET FINANCING, RONGDAO WANG RECEIVED AN UNUSUAL MISSION IN 2014 FROM THE CITY OF SHANGHAI. SHANGHAI OFFICIALS ASKED RONGDAO WANG TO HELP FOSTER CHINA'S GROWTH INDUSTRIES. GROUND ZERO WAS THE BAOSHAN DISTRICT IN SHANGHAI. IT'S ONE OF CHINA'S LEADING STEEL TOWNS. SHANGHAI OFFICIALS WANTED RONGDAO WANG TO REVITALIZE SMALL AND MEDIUM-SIZED CONTRACTORS IN THIS STAGNATING INDUSTRY, THEY ASKED ZHOU TO FIND COMPANIES THAT COULD THRIVE IN GROWTH INDUSTRIES AND HELP FINANCE THEM. TODAY, ZHOU IS CHECKING OUT A SMALL STEEL WORKS COMPANY. FOR MANY YEARS, THE FIRM HAS BEEN A SUBCONTRACTOR TO A STATE-OWNED STEEL COMPANY IN SHANGHAI. >> ZHOU'S PRACTICE IS TO LOOK CAREFULLY AT THE INNER WORKINGS OF A COMPANY AND ASCERTAIN ITS STRENGTHS, QUALITIES THAT CAN'T OFTEN BE SEEN BY ANALYZING DATA. ZHOU REALIZES THIS COMPANY POSSESSES A HIGH TECHNICAL CAPABILITY OF WELDING DIFFERENT METALS PRECISELY. >> HE CONCLUDES THIS TECHNOLOGY IS ALSO NECESSARY FOR NEW INDUSTRIES, SUCH AS FOR THE WELDING OF NEW MATERIALS. IT'S NOT EASY FOR THESE KINDS OF SUBCONTRACTORS TO BORROW MONEY FROM EXISTING FINANCIAL COMPANIES. AND FOR STEEL-RELATED FACTORIES, IT'S EVEN MORE DIFFICULT. ZHOU GETS DOWN TO BUSINESS, TOGETHER WITH ONE OF HIS EMPLOYEES IN CHARGE OF BAOSHAN DISTRICT. THEY DON'T NEED TO PUT UP COLLATERAL. ZHOU AND HIS TEAM MAKE AN OFFERING FOR THE LOAN THROUGH THE INTERNET. WILL ANYONE RESPOND? >> SEVEN PEOPLE INVESTED. ZHOU AND HIS STAFF DO ANOTHER RISK CHECK. THEN THEY PREPARE TO TRANSFER THE MONEY TO THE IRON WORKS COMPANY'S ACCOUNT. >> RONGDAO WANG IS PUTTING ITS RESOURCES INTO ANOTHER INDUSTRY THEY FEEL HAS POTENTIAL TO GROW. IT IS AGRICULTURAL CORPORATIONS. THE SECTOR IS INTERTWINED WITH THE NATION'S TEN BIG GROWTH INDUSTRIES. BUT FINANCING IS NOT REACHING IT. TODAY, ZHOU IS VISITING A LARGE-SCALE PLANTATION IN ANHUI PROVINCE THAT HE'S PROVIDING FINANCING TO. HE'S COME TO INSPECT THESE FIELDS WHICH WERE RECENTLY DAMAGED IN A FLOOD. >> WITH FINANCING FROM RONGDAO WANG, THIS AGRICULTURAL CORPORATION LAUNCHED LARGE-SCALE CULTIVATION OF KIWI FRUIT. THE FLOODING HAPPENED JUST BEFORE THE HARVEST. >> ZHOU IS ALSO VISITING AN AQUACULTURAL COMPANY THAT PRODUCES FRESHWATER FISH. WITH THE RONGDAO WANG FUND, THE COMPANY EXPANDED ITS OPERATIONS AND INCREASED THE VARIETIES OF FISH IT PRODUCES. HOWEVER, THE FLOOD RAISED WATER LEVELS IN THEIR PONDS AND ALMOST ALL THE FRY THEY HAD JUST PURCHASED SWAM AWAY. >>> THE COMPANY WILL NEED ADDITIONAL FINANCING TO CONTINUE ITS OPERATIONS. HOWEVER, THE RISK IS VERY HIGH. THE GOVERNMENT EXPECTS RAPIDLY GROWING NEW INVESTMENT COMPANIES TO PLAY A MAJOR ROLE IN CHANNELING FUNDS TO GROWTH INDUSTRIES. HUGE AMOUNTS OF PERSONAL ASSETS ARE FLOWING INTO THESE INDUSTRIES. HELPING GIVE BIRTH TO 12,000 NEW COMPANIES EVERY DAY. HOWEVER, THIS INVESTMENT BOOM IS OVERHEATING AS IT GOES BEYOND THE GOVERNMENT'S INTENTIONS AND CAUSES A NUMBER OF PROBLEMS. IN DECEMBER 2015, AUTHORITIES UNCOVERED WHAT'S BELIEVED TO BE THE BIGGEST FRAUD CASE IN CHINA'S HISTORY. EXECUTIVES OF AN INTERNET FINANCING COMPANY EMBEZZLED MORE THAN $6.8 BILLION IN INVESTORS' FUNDS. THEY STOLE SAVINGS FROM SOME 900,000 PEOPLE. AND THE TROUBLE HASN'T ENDED WITH THIS CASE. THIS IS A CONSULTING SERVICE FOR ONLINE FINANCE PROBLEMS. >> MORE THAN 600 CASES ARE REPORTED BY TELEPHONE OR EMAIL EVERY WEEK. IN MOST INSTANCES, MONEY THAT HAD BEEN LOANED OUT IS NOT RETURNED TO INVESTORS. >> IT SAID THAT UP TO NOW, ONE IN THREE ONLINE FINANCE COMPANIES HAS CAUSED PROBLEMS FOR ITS CUSTOMERS. IN AUGUST 2016, THE CHINESE GOVERNMENT FINALLY UNVEILED REGULATIONS FOR INTERNET FINANCE. AMONG OTHER THINGS, THE REGULATIONS IMPOSE LENDING LIMITS AND STRICTER FINANCING OVERSIGHT. GOVERNMENT LEADERS ARE BEGINNING TO TRY TO CONTAIN THIS OVEREXTENDED BOOM. HOWEVER, THE POWERFUL MOMENTUM UNLEASHED BY THE TORRENT OF MONEY SEEKING PROFITABLE TARGETS FOR INVESTMENT IS NOT GOING AWAY. AND AS THIS INDUSTRY REMAINS HOT, COMPETITION AMONG INVESTMENT COMPANIES IS BECOMING MORE INTENSE. THAT'S FORCED PAN XIAOXI TO CONTINUE WITH HER PUNISHING SCHEDULE AS SHE SEEKS NEW INVESTMENT TARGETS. >> IN ORDER TO BEAT THE COMPETITION, SHE'S TRYING TO FIND BIGGER AND RISKIER INVESTMENT PROJECTS. TODAY SHE'S VISITING A VENTURE COMPANY THAT'S INVOLVED IN A BIG PROJECT RELATED TO THE ENVIRONMENT AND ENERGY, AN AREA THE CHINESE GOVERNMENT IS FOCUSING ON. THIS BIOMASS POWER GENERATION PROJECT PRODUCES ELECTRICITY BY BURNING AGRICULTURAL AND OTHER WASTE. THE COMPANY'S ORIGINAL TECHNOLOGY IS USED FOR MAKING FUEL. AGRICULTURAL WASTE IS ONE OF THE CAUSES OF ENVIRONMENTAL POLLUTION IN RURAL AREAS. THE COMPANY IS TURNING THIS WASTE INTO FUEL. THEY PUT IT INTO THIS MACHINE AND USING THEIR ORIGINAL PRESSURE TECHNOLOGY, THEY COMPRESS THE WASTE, TURNING IT INTO FUEL. THIS ENTREPRENEUR IS A FORMER UNIVERSITY RESEARCHER. HE DEVELOPS THIS SPECIAL PRESSURE TECHNOLOGY. HE SAYS HE HAS ACHIEVED HALF OF THE COMBUSTION POWER OF COAL AT THE SAME WEIGHT. HOWEVER, THE CONSTRUCTION OF THIS POWER GENERATION PLANT PRESENTS MORE RISKS THAN EXPECTED. THE LOCAL GOVERNMENT SOLD THE LAND TO THE COMPANY AT A CHEAP PRICE. BUT THE CONSTRUCTION PLAN WAS OVERLY OPTIMISTIC AND THE COMPANY DEPLETED ITS FUNDS COVERING BASIC BUILDING COSTS. CONSTRUCTION HAS BEEN SUSPENDED FOR MORE THAN A YEAR. >> THE RESUMPTION OF CONSTRUCTION BRINGS RISKS, TOO. THESE INCLUDE THE PROBLEM OF COMPENSATION DURING THE WORK STOPPAGE AND THE REVAMPING OF THE BASIC CONSTRUCTION PLAN. COMPANY REPRESENTATIVES STRESS THAT THEY'VE BEEN GETTING INQUIRIES FROM ABROAD. BUT THE QUESTION IS WHETHER INVESTORS CAN ACTUALLY GET A RETURN COMMENSURATE TO THE RISK. >> IT'S A BIG INVESTMENT AND IF IT FAILS, PAN'S COMPANY WILL SUFFER SERIOUS DAMAGE. ON TOP OF THAT, THERE ARE NO PROSPECTS OF A QUICK RETURN. SOMETHING THEIR CLIENTS EXPECT. PAN DECIDES TO PASS ON THE DEAL. >> PAN ALWAYS WORKS TO GET A HIGH ANNUAL YIELD OF 30% FROM HER COMPANIES' INVESTMENTS. IT'S A HARD THING TO DO IF SHE DOESN'T PILE UP A LOT OF SMALL INVESTMENTS. PAN FEELS CAUGHT BETWEEN THE DEMAND FOR PROFIT FROM HER CLIENTS, AND THE EXPECTATIONS OF THE GOVERNMENT. THE PRESSURE TO CONTINUE TO PRODUCE RESULTS IS RELENTLESS. >>> IN ORDER TO SURVIVE THE >>> IN ORDER TO SURVIVE THE COMPETITION, PAN HAS WORKED DAY AND NIGHT TO EXPAND HER BUSINESS. ONE CASE THAT CAME UP HELPS TO REMIND HER OF HOW HARD IT IS TO FIND DIAMONDS IN THE ROUGH, BUT SHE CONTINUES TO MINE THE WORLD OF START-UP BUSINESSES. >> THE SOURCE OF THE PROBLEM IS A DOCTOR OF CHINESE MEDICINE WHO WAS INTRODUCED TO HER BY AN INFLUENTIAL PERSON. THE DOCTOR NEEDED FINANCING BECAUSE HE WANTED TO COMMERCIALIZE HIS ACUPRESSURE HEALTH METHOD. PAN LIKED THE IDEA, SO SHE PREPARED OFFICES FOR HIM AND MADE UP A PROPOSAL FOR HIS BUSINESS PLAN. BUT THEN, A PROBLEM AROSE. AND THEY WERE FORCED TO SUSPEND THE BUSINESS. >> PAN STOPPED THE PROJECT AFTER SHE SAYS SHE FOUND OUT THE DOCTOR USED HER PROPOSAL AS BAIT TO HOLD PARTIES TO GATHER MONEY. POSSIBLY ILLEGALLY. >> SHE WAS CAUGHT OFF GUARD BECAUSE THE CONNECTION CAME FROM THAT TRUSTED, INFLUENTIAL INDIVIDUAL. PAN CALLED THAT PERSON'S OFFICE. BUT THEY WOULDN'T ANSWER. SHE HAD SOMEONE ELSE CALL TO PROTEST. >> THE TWO PARTIES CANNOT AGREE ON ANYTHING. PAN BELIEVES THAT PERSONAL CONNECTIONS WERE THE KEY TO SUCCESS IN CHINESE SOCIETY. IT WAS THE FIRST TIME SHE HAD BEEN BETRAYED BY ONE. >> MEANWHILE, STAFF AT RONGDAO WANG HAVE BEEN VERY BUSY RESPONDING TO A NEW GOVERNMENT REGULATION RELEASED IN AUGUST 2016. THEY ARE FACING MORE SCRUTINY AS THE GOVERNMENT RATCHETS UP ITS INSPECTIONS OF INTERNET FINANCE OPERATIONS. THE TIME AND COST REQUIRED TO READY THEMSELVES FOR THE INSPECTIONS HAVE INCREASED DRAMATICALLY. THEY'RE BEGINNING TO WORRY ABOUT THE IMPACT ON THEIR HALLMARK, THEIR SPEEDY FINANCING. TO DATE, RONGDAO WANG BEGINS THE DIFFICULT TASK OF REVIEWING THE ADDITIONAL FUNDING FOR THE TWO COMPANIES DAMAGED BY THE FLOOD. >> ZHOU DECIDES TO PROVIDE THE ADDITIONAL FINANCING, PUSHING ASIDE THEIR CONCERNS ABOUT RISKS. >>> WILL THEY BE ABLE TO RAISE THE MONEY FOR THE ADDITIONAL FINANCING DESPITE THE RISKS? >> BUT AS ALWAYS, THEY RAISE THE MONEY JUST LIKE THAT. THEN THERE'S THE IRON WORKS COMPANY THAT IS ASKING RONGDAO WANG TO PROVIDE WORKING CAPITAL FINANCING. IT'S BEEN SIX DAYS SINCE THE MONEY FOR THE LOAN WAS COLLECTED THROUGH THE INTERNET. THE PERSON IN CHARGE OF THE LOAN FROM RONGDAO WANG ARRIVES. >> SPEEDY FINANCING IS THE >> SPEEDY FINANCING IS THE LIFEBLOOD OF RONGDAO WANG. WILL THEY BE ABLE TO CONTINUE TO FULFILL THAT ROLE UNDER THE NEW REGULATION REGIME? IN THE END, IT TOOK MORE THAN A MONTH FOR THE COMPANY TO GET ITS FINANCING. AFTER GETTING BURNED BY ONE INVESTMENT, PAN HAS JUST RECEIVED A GOOD OFFER. A BIG-NAME INVESTOR HAS ASKED HER TO PARTICIPATE IN A LARGE PROJECT HE'S JUST LAUNCHED. >> PAN'S NEXT FOCUS OF BUSINESS IS CHINA'S ENTERTAINMENT INDUSTRY. WHICH THE GOVERNMENT VALUES AS A NEW SOFT CULTURE EXPORT. >> WHILE BEING AWARE OF GOVERNMENT POLICIES, PAN IS OFF ON ANOTHER TRIP TO LOOK FOR A PROMISING TARGET FOR INVESTMENT. CHINA IS NOW A VENTURE CAPITAL SUPERPOWER. PRODUCING 12,000 START-UPS EVERY DAY. BUT THE QUESTION IS -- HOW MANY LEADERS OF THE NEXT-GENERATION INDUSTRIES WILL IT BE ABLE TO FOST CENTRE THE MONEY OF 1.4 BILLION PEOPLE CONTINUES TO CHANGE HANDS IN THE COUNTRY'S FINANCE CAPITAL. TO FEED THE GROWTH OF A GREAT CHINA. >>> HELLO AND WELCOME TO NHK "NEWSLINE." HERE WITH WITH THE LATEST AT THIS HOUR. MALAYSIA'S FOREIGN MINISTRY HAS ANNOUNCED IT'S EXPELLING NORTH KOREAN AMBASSADOR OVER THE KILLING OF THE HALF BROTHER OF THE NORTH LEADER, KIM JONG-UN. THIS CAME SATURDAY AT LOCAL TIME. THE AMBASSADOR IS REQUIRED TO LEAVE MALAYSIA WITHIN 48 HOURS. THE MINISTRY WILL BE DEPORTED HIM AS PERSONA NON GRATA OR A NON-WELCOME PERSON.
"Its simple, we see what other start ups are successful then steal their IP."
Pure propaganda