Innovative first, regulate later has been the implicit guiding principle of China’s growth over the past three decades. It is no different for the consumer internet industry that exists in China today, argues Jerry Wu. As the industry graduates from adolescence to adulthood, proper regulations and oversight are being put in place. But instead of spelling the end of value creation for the consumer internet industry, having institutionalised guardrails should cement its role as a core pillar of China’s economy and ensure more profitable, sustainable growth in the future.

As China enters a new paradigm of a more inclusive economy, with more sustainable growth and an accelerated pace of innovation, Jerry goes on to explain why investors must also reorient their approach.