Exclusive speech by Li Xiaojia, the Hong Kong Stock Exchange: In the 5G era, technologies such as blockchain will give birth to new exchanges and trading models.

On March 31, Li Xiaojia, Chief Executive Officer of the Hong Kong Stock Exchange Group, delivered a speech entitled “The Distance and Nearness of Data and Capital” at the 2019 China (Shenzhen) IT Leaders Summit. Li Xiaojia said that there will be new exchanges and new trading models in the 5G era. Blockchain, encryption technology, etc. will help large-scale transactions of data between different entities.

The computing power is nuclear kinetic energy. Li Xiaojia said that in the digital society, computing power is nuclear kinetic energy, which can fully support the development of 5G, and AI has advanced by leaps and bounds. In the 5G era, more and more data is becoming commodities and raw materials. Today's cloud computing is equivalent to the past energy. Today's transmission is the past transportation. Now, the computing power of cloud computing can generate a large amount of raw data through AI conversion to form new products and sell them to customers, and generate revenue from customers.

Encryption technology solves data naked sales. Li Xiaojia believes that the transmission of data needs to take into account the privacy, trade secrets, competitive interests and government regulatory requirements of all people, in the case of encryption, sharing and trading of data usage rights, rather than selling bare data.

Blockchain breaks data islands. Li Xiaojia said that although today's data is massive data, it is still on many isolated islands, and most of the data is idle. Many companies have basically a small scope for the operation of data, and they are not daring to do so. Li Xiaojia believes that the core problem causing this phenomenon is because there is still a lot of work in the middle that has not yet begun, including the determination of rights, standards, pricing, deposits, and credit system construction. The use of blockchain technology can completely solve the data identification, pricing, deposit, credit and traceability. In particular, traceability, based on blockchain technology, allows data owners' interests to be returned to data owners after several years.

After solving the data privacy and data silos and other series of underlying issues, Li Xiaojia believes that there will be new trading models in the 5G era, and new exchanges will emerge. Reshaping China's capital era in the 5G era from technological means, let China achieve a major transcendence.

HKEx Li Xiaojia

Attached the full text of the speech:

I am very happy to talk with you. The topic I am talking about today, the 5G we have been discussing, I want to discuss the far and near data and capital in the 5G era. Last year, we talked about the story of Wang Laowu's search for a relative, which is basically the process of finding and searching for each other between the unicorn and the capital. Today, I use the same framework to discuss the two kings in the 5G era, data and capital, and the distance between them.

First of all, let's look at the 1G era, the entire capital market is at the top, the capital market is constantly pricing, but in the real economy, almost all companies are such production models, from the production of materials, commodities, through Transportation, after the conversion of energy, and finally through production, the formation of products, the products are sold to customers to form a profit, this income is the support of capital.

In the whole process of development, the resulting benefits enable the capital market to price bulk commodities, pricing for transportation, pricing for energy, pricing for production, pricing for products, and integrating stocks and bonds when the company goes public. Pricing allows capital to continue to be extended step by step to all aspects of production. The chain underneath is a system of confirmation, standards, pricing, and accounting, which is the so-called audit. Finally, all the accounts make the capital have a clear pricing system when looking for these kings.

What is the big difference in the 5G era, in 5G who is the new Wang Laowu, how to find capital? In fact, in the 5G era, we still use such a basic framework to consider the operation of capital and the search for capital. In the 5G era, it is almost the same as the previous one. In the 5G era, more and more data is becoming a commodity, becoming a raw material, and the data itself is transmitted. Thanks to the efforts of all of you here, you have generated a huge amount of data. . Today's cloud computing is actually the energy of the past. Today's transmission is the past transportation. Today's transmission, we met yesterday to discuss how much 5G demand is, and can make 5G invest so much in transmission, where is the return. Therefore, due to the huge amount of data, due to the merits of everyone, today there is a huge amount of data, becoming a new raw material. Since you, from 2G to 3G to 4G, to today's 5G, the computing power of cloud computing will become a new energy source, and the original large amount of massive data can be transformed into the next step through energy. Through production, the past is production, today is AI, is to use AI to calculate big data, calculate new products through AI conversion, sell to customers in 5G new products, and generate revenue from customers.

Everyone sees these two figures. The $ symbol is huge. The $ symbol here is very small. In today's era, capital has not found its own object in the 5G era. Capital has great power and hopes to support it in the 5G era. The Internet economy has developed on a large scale, but today's data economy, today's AI can not really fully attract enough capital. On the one hand, it seems that capital is very close to the data, but it seems that we are far away to talk about it in a while, but is it supposed to be very close? Why is it so close now? Because today's massive data, through Tencent, Ali, JD, and a variety of unique platforms in China, China's economy has become the world's largest digital economy, that is to say, when the Chinese people enter the era of no cash, we Almost every economic activity, even social activities and personal activities, has been completely digitized. The massive data formed after the digitization is now very close. Everyone feels that the application data and the data are very valuable. This matter has been deeply rooted in the hearts of the people. On many large platforms, they have already used a large amount of data they have drawn on this platform, and further generate their own products on these large platforms through cloud computing and AI, and continue to make customers on their platforms get updated levels. service. Computational power is today's nuclear kinetic energy, fully capable of supporting the development of 5G, and AI is advancing by leaps and bounds.

But now the biggest problem is the data itself. The reason why today's data and capital are very close is because everyone thinks that this chain has been clearly seen, especially in the big health field, we feel the distance between data and capital. Getting closer and closer. Because there is a very important core in the field of big health, that is, the development of great health, just now President Zhu Min talked about aging, which means that in the lives of our generations, we have to find new ways of health and medical treatment. The core of this method and method is based on data, because all doctors are actually an AI, in fact, their own data, why is the older Chinese medicine so good? Because he is the center of data, he lived for 70 years and watched the disease for decades. He is more experienced than a doctor who has just been in the hospital for three years. The so-called experience is that he has data, he has AI, he has himself. A certain amount of computing power.

But today, all the patients of the Chinese people, we are sick ourselves, and the data we get from our own illness should be helpful to others. Therefore, the data itself, hospital data, patient data, physiological characteristics data, genetic data, these data are our own, we hope to find their own problems after making it. But the more this happens, the data of each person is more useful to another person. Therefore, in the accurate diagnosis and precise medical treatment, we have been very close in data and capital.

If you think about it on the product side, if the product is C, and the data end is C, if there is a large amount of patient data that can be gathered, you can get capital support. If everyone is on the product side, it is ours. Our medical records are compared with the data in the central database. After the AI ​​treatment, we can give us more accurate diagnosis and even more precise treatment. In this way, the C2C model, capital will certainly enter the data on a large scale, which is why today's capital and The data seems to have come very close.

But at the same time, we also feel that capital and data seem to be far away. Although today's data is massive data, it is still on many isolated islands, even the largest platform. The largest single platform in China is also a large island. Of course, a very effective ecosystem has been formed in the big island. But for the whole society, these data are still isolated data.

Everyone knows the biggest difference between data and commodities. If the bulk commodity is consumed once, it will directly enter the following production process, and the data can be used repeatedly, repeatedly used, and used at the same time. But the data on the island can only be useful on isolated islands , and the more data, the more valuable it is, the more shared it is, the more diverse it is, the more valuable it is, the more data you add and the data of others are worth more than your own data. It is a basic concept and a basic truth. Everyone knows very well.

But today, isolated islands, basically most of the data is still idle. Nowadays, many companies are carrying out data operations. These operations are basically small in scope, limited in scale, and basically carried out in gray areas. They are not daring to do big things. If you do it, you may be biased.

What is the core issue here? Compared with the traditional economy, the most important thing about the traditional economy is that the chain is composed of traditional accounting standards, legal standards, and listing guidelines. At 5G, the reason why these chains are far from capital and data is because there is still a lot of work in the middle, including confirmation, standard, pricing, deposit and credit system. Whose data is this? Can the data be sold, is it selling ownership, or selling the right to use, is it to share ownership, or to share the right to use? How is the standard made? How do pricing systems work with each other? Since data is a multi-transaction, long-term transaction, and a data can be traded at multiple revenue points, what to do with the deposit point, how to do data traceability.

There are a series of confirmation, standard, pricing, deposit and credit systems. In particular, traceability, distribution , and income distribution , how these things are made can determine how to make data in this value chain truly realize the idle commodities from the almost useless data, like the mine's ore. Going to the product to form a profit, because only the income and the source of the final commodity can be opened up, the data itself is worth the money, the transmission ability is valuable, the computing power is valuable, the AI ​​is worth the money, the product is worth the money, the money that the money is paid from the customer is traced back to In raw materials, there is a clear distribution of benefits and allocation criteria at each point, so that capital can continue to fall into every link in the chain.

We talked about the three major operators today who dare to invest 2 trillion to 5G, because today's operators are in accordance with today's charging model, this money will never be earned. However, if such a pricing system is implemented, there must be different transmission power for different data requirements. If the price is different during the transmission process, the higher the end, such information transmission is definitely simpler than the voice transmission. Much more, the transmission of this place has a certain right relationship, the economic distribution, and finally the capital can smoothly enter this link.

From this perspective, it seems that capital is still far from the data, but we believe that after everyone's efforts, this distance will definitely shrink rapidly. Who will narrow this? All of us should all come together to explore how to establish the following system. There are only those who take the lead and who organize the problem. No one can do it. No one can do it. We need all of us to jointly The value system is formed. Only when this value system is formed, the money in the capital market will surely come down.

How is this done? What is the problem in the end? Is it necessary for the government to come forward to legislate? Legislation, rules, and supervision must be behind the market. In fact, today is the development of the past capital market for 200 years, to be completed within a few years, the first 100 years of the capital market are basically OTC, and later form the exchange market, and finally form the government's securities and futures management, this is the process. We have to pack this century in the next five years, and all of them will go first in the market within five years. We hope that through the exchanges, other credible CCM will jointly organize the industry and make the following core. In particular, the accounting system and traceability system. This is very important. Why do everyone think it is far away? What are the key issues of privacy, how to do business competition, and how many original transactions, unorganized transactions, scale-free transactions, gray transactions, and unregulated transactions? There are two cores in it. Who said it? All of us. How to do it? It depends on technology. We can't use the traditional 1G exchanges, all the eras before 5G, how many lawyers, accountants, regulators, and appraisers are there to do the pricing, standards, accounting, and confirmation systems in the middle of production. We are not today. It may be like this. Engage hundreds of thousands of millions of professionals to remember this account. This is not the case. In the new 5G era, it is basically solved by technology.

There are two major technical aspects that are very important. The first one is the encryption link . Only when there is encryption means that everyone needs to protect privacy, when it is necessary to protect trade secrets, it is necessary to protect the competitive interests. At the time, when it is necessary to meet the government's regulatory requirements, there is an encryption method that everyone agrees with, so that the data itself is not selling bare data, sharing and buying and selling data, and buying and selling in an encrypted state. Only a series of interests just mentioned can be protected.

Underneath, we have the right to confirm, pricing, deposit, credit, traceability, especially traceability. Each data itself is not like the consumption of bulk commodities, but it is used repeatedly. It costs money once, but this interest may be five years. Only later, how to return this benefit, we must solve the problem like a blockchain technology . Great health is the easiest solution. If the product can be C-side, everyone is willing to spend money to take my medical records in big data. There is a lot of capital to buy concentrated data. Many patients can put themselves in themselves. The data is contributed, someone gives you money, and then you can accurately diagnose and accurately treat you. As long as there is a credible neutral organization to jointly organize everyone, through technology, through encryption, through decentralized bookkeeping system, it is possible to establish standards, protect and protect rights.

Therefore, I think there will be a new exchange in 5G . In other exchanges around the world, China’s capital market is a latecomer, but in the game and the blindness of data and capital, we are no later than any country. Even before all countries. Therefore, in the 5G era, new trading models will emerge . In this new era, we share, unlike the 1G era trading, only determine the capital pricing system and the confirmation system. Under the society, the society has all been completed. Today, I hope that the exchange will play a certain function and organize the society. The capital pricing system above is very clear, and the following is still unclear. Together, we will organize the following encryption and traceability distribution, income distribution system arrangement, through technology. Means to reshape China's capital market in the 5G era. In the 5G era, China will certainly achieve a major transcendence, making data and capital meet early, meet early, combine early, and develop early, thank you!