A Conversation with Wang Lixing: The Biggest and Hardest Hurdle — Huaxing Has Already Cleared It

By Lili Yu

Edited by Jing Liu

September: relisted on the Hong Kong Stock Exchange. October: chairwoman Xu Yanqing returned. November: Wang Lixin took over as CEO. Through this elegant three-act sequence, China Renaissance is emerging from a prolonged period of adjustment. The past 20-plus months have undoubtedly been the most trying time for this company, founded in 2005 and deeply symbolic of China's primary market. Now, the new CEO tells us that China Renaissance "has passed the biggest and toughest hurdle since its founding," and that 2025 will be the year it shifts "from defense to offense."

Addressing the downturn in the primary market driven by difficult exits and other challenges, Wang has championed an "all-in on M&A" rallying cry internally. In his view, as a participant and beneficiary of the venture capital industry's golden age, China Renaissance has a duty to step up during the sector's difficult moment. The latest word is that they've already signed and closed two deals worth several billion yuan each. Meanwhile, they're also making frequent moves in the surging fields of AI and embodied intelligence. Beyond that, despite its own adjustments, China Renaissance remains the financial advisory firm with the "most complete organizational structure" and "broadest industry coverage" in today's venture market.

Wang joined China Renaissance as a campus hire in 2007, and is what chairwoman Xu Yanqing calls a "CR Baby." After 2015, he led many of the firm's landmark M&A transactions, including the Didi-Kuaidi merger, the Meituan-Dianping merger, the 58.com-Ganji merger, and Meituan's acquisition of Mobike. In Xu's recollection, Fan Bao once praised the M&A team that Wang built as China Renaissance's most core, most battle-hardened "Praetorian Guard." And now, in her eyes, Wang is "the deserved next-generation CEO for China Renaissance 2.0."

At this fresh chapter for the firm, we sat down with this new successor to discuss how he plans to fight the battles ahead, and how his mindset has evolved over these past few years.

"We passed the biggest and toughest hurdle since China Renaissance's founding"

"Dark Currents": The past two years have been an unusual cycle for China Renaissance. Have you changed much personally during this period?

Wang Lixin: My hair's gone quite a bit grayer (laughs).

"Dark Currents": Becoming the new leader of China Renaissance at this moment — do you feel something like a wartime CEO?

Wang Lixin: The past two years, we've essentially passed the biggest and toughest hurdle since China Renaissance was founded. Fortunately, we understand that winding paths lead to secluded beauty, and that hardship builds greatness. Besides, no one rises in a straight line forever.

The "wartime CEO" you mention was coined by Ben Horowitz, a founding partner at A16Z. Silicon Valley is also buzzing about "Founder's Mode" these days. Both point to an entrepreneurial spirit, which is also an important part of China Renaissance's culture.

This year I proposed "second startup" internally — hoping that after two years of tempering, we can shed our baggage and attachments, break through our plateau, and find new growth engines.

"Dark Currents": But talking about "second startup" at this moment isn't easy.

Wang Lixin: Many might see this as just morale-boosting, but I genuinely hope we can surpass the heights that Bao achieved with us.

This year, at an internal morning meeting, I shared a diary entry I wrote when I first made managing director. The core idea was: Bao is ten years older than me, and I want to see how many years it takes me to reach — and even surpass — the heights he led us to. Some might laugh at this as overreaching, but my thinking hasn't changed.

Of course, the times are different. Following the path the older generation laid out may no longer suffice. This demands that we find our own way. I believe that those who've stayed through these storms — while loyalty and duty matter — definitely want to leave their mark on building China Renaissance 2.0.

"Dark Currents": How will China Renaissance fight the battles ahead?

Wang Lixin: Over the past two years, whether due to the macro environment or our own special circumstances, our main theme was protecting our core business and prioritizing stability. But in 2025 we'll shift from defense to offense, from "consolidation" to "expansion."

We've had very thorough discussions these past few months about how China Renaissance will fight going forward. We still need to identify and capture the market's core growth logic, and provide the most effective liquidity for it.

China Renaissance's underlying business logic has always been providing liquidity for growth, which has deeply imprinted growth into our own DNA. With the company's relisting, Xu's return, and the renewal of management, China Renaissance will fully emerge from this special period and enter a new cycle.

"Dark Currents": Before your appointment as CEO, Ms. Xu Yanqing was also named chairwoman of the board. What direct impact will this have on internal decision-making?

Wang Lixin: Xu has never been absent from China Renaissance's growth. She played a crucial role in many major strategic deployments. "Sharing and openness" is part of the China Renaissance spirit. Xu's return is a shot of adrenaline and a binding agent, giving the firm clearer direction.

Internal communication at China Renaissance is built on trust and respect. On specific matters, everyone can express their views fully; once decisions are made, they're executed efficiently. So we have a stronger, more cohesive partnership. Xu's return makes the entire management structure more effective.

The dealmaking craft that gets bitter rivals to sit down and talk

"Dark Currents": I hear China Renaissance is all-in on M&A. Not only is there a dedicated M&A team, but the entire FA team is participating. Yet overall market M&A data doesn't look good — compared to 2021-2022, 2023-2024 has been consistently declining.

Wang Lixin: The current poor data is because it inherently lags. M&A is highly non-standard and long-cycle — typically six months to a year to sign, and even longer to close.

One M&A deal China Renaissance recently closed had been ongoing for nearly two years. The main reason was that when the market restarted after COVID, buyer and seller expectations hadn't fully converged. The buyer, feeling the chill as secondary market enthusiasm cooled, reduced its willingness to buy. The seller still had some attachment to its valuation expectations and hadn't fully adjusted to the new cycle.

So current transaction data more reflects market conditions from a year ago or earlier, which explains the gap between what people feel and what statistics show.

"Dark Currents": How much do you think the expectation gap between buyers and sellers has narrowed?

Wang Lixin: The gap is getting smaller. When we talked in August, seller shareholders were already relatively open and positioned, while buyers needed more of a push.

From our perspective, the M&A market has seen considerable change recently. A series of policies, especially the "Six Measures for M&A," have significantly enhanced A-share listed companies' ability and willingness to do M&A. According to our internal incomplete statistics, M&A restructuring announcements in October-November have already increased noticeably compared to before.

For any single M&A project, it's hard to say there's a perfect timing. Each transaction is affected by too many factors — the external environment may be right, but internal corporate conditions may not align. When we talk to clients, we plant seeds first and wait for them to ripen. Still, the present is a good window: both sides' mindsets are closer, and transaction structures can be more flexible.

"Dark Currents": Where do the difficulties typically lie in getting an M&A deal done?

Wang Lixin: M&A transactions are highly non-standard. Even when a deal looks perfectly logical commercially, it can still fall through. There are many stakeholders, and you need to satisfy all their interests simultaneously. Much of the time you're walking a tightrope. Not to mention that many deals collapse due to human, emotional factors. So even when everything is ready, the east wind still matters. Without lubricant or catalyst in the middle, it's hard to get done.

"Dark Currents": In your observation, what's the profile of companies that are easier to sell in today's market? And who are the active buyers?

Wang Lixin: M&A is too non-standard, and buyers' motivations vary widely, so it's hard to say there's a profile of "easier to sell" targets. If we must look statistically, companies valued below 1 billion yuan typically have a broader pool of potential buyers, so their probability of closing may be higher.

As for buyers, unlike the early days when they were heavily concentrated among a few major internet companies, we now face a more dispersed market. If we must categorize, there are roughly six or seven dimensions of labels we could apply.

"Dark Currents": In 2015, China Renaissance led many landmark deals — Didi-Kuaidi, Meituan-Dianping, 58.com-Ganji. How did this series come about?

Wang Lixin: I remember around early 2016, near the Spring Festival, a few of us were at a coffee shop in Shunyi reviewing the four major internet M&A deals of the past year. Honestly, even we were somewhat surprised.

I remember very clearly: on Valentine's Day 2015, we completed the Didi-Kuaidi merger. Because it was announced on Valentine's Day, it had a very obvious demonstration effect. Everyone suddenly realized the commercial logic and possibility of such transactions, which led to the subsequent deals happening in succession. Often these things have a snowball effect.

Of course, looking back from today, luck certainly played a part. We also caught the tailwinds of the era, and with professional understanding, essentially captured all the commanding heights of M&A in the internet sector.

"Dark Currents": Beyond the snowball effect, what's China Renaissance's special craft in M&A?

Wang Lixin: We understand the commercial and capital logic behind transactions. Though the M&A environment and drivers have changed enormously, we have the dealmaking craft that got those bitter rivals to sit down and talk. On that foundation, we have global capital market channels, and deep familiarity with regulatory rules and structural design.

"Dark Currents": Theoretically, those early mergers of similar companies should be among the most difficult types of M&A.

Wang Lixin: Indeed, we call them "merging like terms," and they're one of our representative transaction types. Among M&A projects, these demand the highest dealmaking craft. In acquisition-style deals where a larger company absorbs a smaller one, typically one side leads and the other exits — it's a "finite game" with more flexibility and room to maneuver.

Mergers, however, are at least for a period an "infinite game." Both teams and shareholder bases need to discuss how to continue "living together." For example, if both sides accept a stock swap, it means both shareholders and teams need to believe the combined entity is a better company. Then: which team stays, which goes? Who leads, who follows? Even early versus late shareholders on each side may have different views.

"Dark Currents": After working on so many M&A projects, what hasn't changed?

Wang Lixin: That's a good question. We keep emphasizing the diversity and differentiation of M&A, but if you look at the bottom layer, certain commonalities emerge. From the hundreds of deals we've handled, closed or not, if both parties have no better path available — and even if they do, it's often one they can't see the end of — then the probability of success is higher. Buying and selling is ultimately a supply-demand calculation. If it works, the final direction and structure will necessarily be the optimal choice and greatest common denominator of the most fundamental interests under current conditions.

"Dark Currents": You declared on your public account that you want to be a hero for the venture market. How does this connect to M&A?

Wang Lixin: Actually, I don't want others to mistakenly think I'm promoting M&A just because I worked on it in previous years. The real reason is we believe this is the most direct and effective contribution we can make to the primary market.

The main factor in the current venture market困境 is blocked exits. We thought: if M&A can help improve GPs' exit performance, giving them DPI, they'll have more confidence to deploy capital, and subsequent fundraising becomes smoother. This is one possible solution for venture market recovery.

We're among those who benefited most from China's venture market boom, so we should do something meaningful for the industry. That's the original intention behind our bold declaration of wanting to be heroes for the venture market.

History never unfolds along optimal paths

"Dark Currents": Beyond M&A, China Renaissance has also done much fundraising for AI companies over the past year. These foundational model companies have successively entered the 20-billion-yuan valuation club, yet commercialization has been slow. What logic supports these high valuations?

Wang Lixin: Mainly two broad consensus points. First, the companies that ultimately win will earn substantial profits. Second, because general-purpose large models have strong geopolitical attributes, China should in any case have its own foundational model companies.

On this foundation, returning to valuation logic, you may need to work backwards: what scale should an IPO be, what kind of returns, then discount back.

"Dark Currents": Has fundraising for these companies developed any new characteristics?

Wang Lixin: Overall, this wave of AI entrepreneurs isn't much different from the dollar-fund era. But what's different in private fundraising these past two years is that it's become rolling financing, unlike the past where rounds had clear boundaries. For example, several star companies we serve have completed multiple rounds in a short time.

"Dark Currents": If financing is continuously rolling, how do you distinguish between rounds?

Wang Lixin: Rolling financing needs milestones. The earlier valuation stays fixed; closely spaced rounds may have light growth, while hitting certain milestones brings larger step-ups or even doubling.

The ideal milestone setup, in my view, focuses on changes in business model: team formation, product formation, or new model release. You can also set milestones based on external environment changes, like shifts in AI direction.

"Dark Currents": In this situation, the FA role is also becoming harder.

Wang Lixin: In today's environment, the FA business has become a highly customized process, with greater emphasis on case-by-case analysis. When some entrepreneurs ask whether certain past fundraising cases can be replicated for their companies, we'll try, but also need to recognize that the time window and market environment are already different.

"Dark Currents": Does rolling financing also indicate too few suitable investors in the market?

Wang Lixin: On one hand, once companies become unicorns, the pool of institutions capable of participating is inherently limited;叠加 current environment where institutions' willingness to deploy is reduced, the financial institutions truly entering are fewer. In our research, the enterprises that can participate at this scale are more state capital and some internet strategic investors.

"Dark Currents": Looking at some American AI companies' experiences, many feel acquisition or merger may be the best outcome for these foundational model companies.

Wang Lixin: Overall, the US M&A environment is also more mature. We've noted that the exit structure of US capital markets actually shifted around 1997 in the 1990s: M&A exits' share rose continuously and stabilized at 70-80%. Their entrepreneurs see selling a company as equally valid a form of entrepreneurial success.

Looking back domestically, in past years, built on underlying tailwinds, more people preferred being the head of a chicken to the tail of a phoenix. But now resistance to M&A has decreased significantly. Realistically, for a founder, selling at a good price at the right time isn't a bad thing — it provides one more exit option.

"Dark Currents": Will mergers like Meituan-Dianping, Didi-Kuaidi happen among this batch of foundational model companies?

Wang Lixin: An important catalyst for that wave of mergers was that everyone was competing in the C-side requiring heavy subsidies. Today's foundational model companies are still very early stage, and overall, they still have ample ammunition.

Moreover, whether in to-C or to-B, each company's layout is quite comprehensive. This reduces complementary effects. Later, if people have different views on direction and convert money and resources into new directions, there may be value in combination. But it's too early to consider this now.

"Dark Currents": How would you summarize the past year of China's large model battles? Because killer applications have been slow to emerge, many people's expectations for this track fluctuate greatly.

Wang Lixin: Overall, we should give China's AI people credit. From the shock of early 2023 to the industry's rapid response, whether major companies, startups, or government — all threw themselves in fully, ultimately managing not to fall behind and keeping pace with the US. In multimodal, embodied intelligence and other areas, there's even a trend of overtaking. The only imperfection is that application落地 hasn't been as fast as expected.

But we always overestimate short-term change and underestimate long-term change. "The hope of the entire village" is concentrated on this track, so expectations are inflated. You may think the industry should develop along a certain path, but history never unfolds along optimal paths.

"Dark Currents": Facing increasingly complex geopolitics, what advice would you give AI companies on fundraising?

Wang Lixin: Different AGI sub-tracks vary greatly, and strategies differ accordingly. But overall, I'd recommend the "small steps, fast running" approach: on one hand, emphasize fundraising flexibility, reduce pressure per round, accelerate fundraising pace, and increase frequency; on the other hand, plan fundraising around business rhythm, fully leveraging business to support, catalyze, and absorb financing.

Accept what you cannot change, change what you can

"Dark Currents": Doing FA today, what's the biggest change compared to before?

Wang Lixin: I have a simple theory about FA business: 1.0 solved information asymmetry — not knowing who was who; 2.0 solved service; and today's 3.0 returns to solving information asymmetry.

Today the capital side has become extremely dispersed. Dispersed doesn't mean more institutions, but that drivers differ from before. The past 15 years looked like vast waters with big fish, but the capital side was very homogeneous; beyond some industrial investors and internet strategics with specific industrial strategic demands, most others pursued economic returns, with relatively aligned expectations and understanding of exit paths.

But today, institutions and the drivers behind capital vary enormously. Some Middle Eastern funds now also have investment attraction demands. Recently I had dinner with a partner at a Middle Eastern sovereign fund, and I joked that he was an investment attraction ambassador.

"Dark Currents": With these changes, how should FA practice adjust?

Wang Lixin: Today there's non-consensus on how to do FA. The market emphasizes wolf-like aggression more, with many small teams fighting each other — whoever makes money is king. But my view differs. I believe FA business still requires an institutionalized approach.

Every week we review market transaction dynamics. I've been in this industry nearly twenty years, yet I still often see investor lists in deals where nearly half the institutions are unfamiliar or unknown. In this situation, relying on individuals or small teams to achieve efficient, professional market coverage is unrealistic. That's why, even in today's challenging market environment, we maintain relatively the most comprehensive industry coverage and most complete organizational structure.

"Dark Currents": In turbulent, ever-changing times, what do you do to find inner peace?

Wang Lixin: That's a good question. At the "dao" level, it's responding to change with constancy — having long-term pursuits that don't change, while also seeing the long-term constant elements in the external environment. At the "shu" level, I typically maintain thinking through meditation, reading, and writing — driven more by endorphins, less by dopamine. I try not to install short-video apps on my phone, avoiding strong short-term feedback that continuously lowers my threshold.

"Dark Currents": Compared to the past golden fifteen years of the internet, do you feel we're entering a new era?

Wang Lixin: Many say this isn't a cycle, it's an era. But when a cycle lengthens, for individuals, it becomes an era.

As a science and engineering student, I used to overly pursue certainty, hoping everything could be precisely calculated. But these past two years I've come to accept that the world is a complex, chaotic system — it's hard to trace which input led to which output. So I've become immune to grand narratives. Nostalgia for the past has no meaning, and no one believes time moves in a straight line.

But there's observer effect, and snowball effect. Everyone is a participant; your actions influence the industry. So overall, I'm more in a state of "accept what you cannot change, change what you can." That's also the biggest change in me these past two years.

Image source: IC Photo