"Attack": rational adherence or choose to flee

For the Chinese concept stocks, 2012 years is like a nightmare. Privatization, short and anti-shorting, mergers and acquisitions, delisting, photovoltaic winter, cross-border supervision and so on have become synonymous with the stock. 2012, the Qihoo 360, the media, New Oriental, NetQin and other companies have been short, coupled with the 2011-year Alipay event triggered by the "Vie Panic" and the impact of the southeast financial fraud, resulting in loss of U.S. investors in the confidence of the shares, the company's value in the long term is underestimated, the IPO has been blocked. At the same time, with the adverse impact of the environment, a number of companies plunged, and everyone fell even more than 50% per cent. According to reports, as of early December 2012, the total market value of the shares was 1.5. So, in the 2013, in the end is the company's rational adherence, or choose to flee? Market capitalisation has shrunk by hundreds of billions of dollars. From December 2010 onwards, the U.S. stock market has been a wave of short Chinese concept stocks, from the green Snow and the city of muddy water questioned and eventually returned to the market, two years to retreat from the city's Chinese companies up to 50. Some of the reasons, some directly questioned back to the city, some due to poor performance of the long-term slump in share prices, hit the 1 dollar rule of withdrawal, and some of the information disclosure is not enough to meet the requirements of the exchange, can be said to the current round of the short wave has a direct or indirect relationship. In the context of a large number of short stocks, the market capitalisation of China stocks has shrunk sharply. Southeast of the question of the April 26, 2011 on the day of the date, as at the beginning of December 2012, 1.5 of the time in the United States listed in the total market value of shares evaporate nearly hundreds of billions of dollars. However, the problems faced by the unit are far more than the evaporation of market capitalisation. Some analysts said that after this round of short wave, the Chinese companies thoroughly encounter integrity crisis overseas, once the "Chinese premium" into a "Chinese discount", overseas investors in the stock companies have become very cautious, in 2012, especially Sina, Baidu and all the most outstanding performance. According to news and statistics, Sina has been a result of micro-blog by the capital market bullish, in the first half of 2011, once climbed to 147 U.S. dollars, and into the 2012, by poor performance and micro-blogging process slow and other factors, the stock price continued to slump, as of December 31, 2012 closed, It closed at $50.22, with a market capitalisation of just 3.355 billion dollars and 1.5 times its market value shrinking by nearly 65%. Baidu, in June 2011, its share price reached a high of 165.96 U.S. dollars, but since April 2012, the stock price has been lower, and below the 90 dollar mark, although the December 31, 2012 close barely close to 100 U.S. dollars, but the market value has shrunk by nearly 40%. Finally, everyone, May 2011, everyone with "China Facebook" concept of the New York exchange, the day closed at 18.01 U.S. dollars, the price rose 28.6%, the market value reached 7.115 billion U.S. dollars, after Tencent, Baidu and Sina, ranked fourth in the Chinese internet company. As of December 31, 2012, however, everyone's share price hasDown to $3.45 trillion, by this calculation, everyone's market value has shrunk by 82%. The decline in investor sentiment and trust has also affected Chinese companies ' listing in the US. It is understood that only in 2012 only the goods will, China Hand Tour Entertainment Group and three companies successfully landed in the United States, a record low, and 2010 and 2011 respectively, there are 42 and 14. A number of companies to fight back short into the 2012, do the aerial stocks almost become an industry, muddy water, such as the agency frequently. Qihoo 360, the media, the new Oriental and many other companies in the gun, but the company is shorting is no longer sitting ducks, most of them actively take measures to counter. November 2011-August 2012, a number of reports questioned the Qihoo 360, once led to the price of Qihoo below the IPO prices. During this period, Qihoo 3,601 was actively responding to various short bets. With Qihoo 360 and the same time, there is also the fight between the media and muddy water. also started in November 2011, muddy Water is also a number of short reports to bombard the media, leading to a fall in the share price of 65%. The media has taken a series of actions to counter short. The short wave to the end of the landmark event is the new east and Muddy waters of the war, July 17, 2012 announced the quarterly bulletin received the SEC investigation notice, the share price plunged 31%; July 18, Muddy Waters released a report attacking New Oriental, the main question point is the new Oriental franchise business and VIE structure, New Oriental shares plunged 31% per cent to a new 5-year low of $9.41 trillion, and in the face of shorting, an independent Special Committee was set up to respond and announce a series of counter questioning measures. Then its share price rebounded strongly, as of December 31, 2012, closed to 25.67 U.S. dollars, the relative muddy water questioned the day 9.41 dollar low point Rose 173%. The privatization of a Chinese company that fled following the privatization of the niche in 2012 and which was launched in 2012 may be another alternative to the crisis of confidence, some industry insiders said that a large number of Chinese stocks in recent years by the United States research institutions sing decline and short selling, the stock price and market confidence collapse, Privatization is not to retreat, to promote the return of capital to a reasonable valuation. Recently, the mass media privatization in the last four months after the dust settled. The media announced that a final merger agreement and plan had been concluded for privatization with Giovanna Parent 2¥q and Giovanna acquisition 2¥q. In fact, the media is only the tip of the iceberg of privatization. According to the news and science and technology to understand that in 2012, a total of 8 companies to complete the privatization of the stock, another 17 proposed and are being privatized. In addition, in February 2012, the Shanda network stopped trading on the Nasdaq, leaving the 7-year gallop to the capital market. At the same time, Alibaba's business-to-business business was also privatized and successfully retired from HKEx. According to the Investment information website SeekingalphaLu, Renren and Dangdang may also follow the pace of privatization of the media, thus triggering a retreat from the market frenzy. Some industry insiders said that the media's retreat may trigger a domino effect, triggering more Chinese quality companies from the United States to withdraw from the city. If we can return to "the pursuit of rational value" from "Demand Capital impulse", the privatization of China-stock company is not to retreat, and promote the return of capital to reasonable valuation. said the person. At the same time, they say privatization is a means rather than an end in any way. When a company develops to a certain stage, cash is not the first requirement. From a long-term strategic point of view, the advantages of privatization can be clearly reflected. Guohong, head of investment banking at JPMorgan's Greater China region, said the privatization of companies was based on different considerations and that privatization should be sustainable. Such deals are growing in size and sophistication, including a lot of debt financing. This should be good news, because companies that want to privatize need sophisticated operations and financing channels. But the company will not choose to privatize, but also depends on the multiple factors, first of all, to see whether the operation of the next city to the company's valuation can have a better upgrade, and secondly to see if the city after the enterprise has a very mature and clear strategic considerations. The transition path after the exit of the city many of these people said that in the short of the company's repeated repression, the U.S. listing of many advantages have ceased to exist. After the privatization of enterprises, there are many ways of successful transformation, the return of a shares or Hong Kong stock market is one of them. "In the future, Hong Kong may become the best place for Chinese companies to list." One is that Hong Kong's proximity to China, which has something in common with the mainland in terms of language and culture, is a good window, and the second is that Hong Kong's stock market is fully marketable and transparent. The same person said. I also pointed out that more than 200 of the current U.S.-listed stocks, whether in the market capitalisation or the number of TMT (technology, media, communications) companies are mostly, they can often get better valuations, transactions are relatively active. But some such as real estate, food, consumer stocks often do not get good valuations, transactions are not so active. It is also a good choice for companies to go to a or Hong Kong stock market after privatization. But Grand President Chu Wenyu introduced another angle of transformation, after retiring as a private enterprise operation, to better develop the unlisted subsidiary of the new business, will not be the shackles of earnings and profit, can more aggressively increase the new business development investment. In addition, planning to merge with other companies or be acquired is one of the options after the exit. For the privatization of those strategic acquirers, the acquirer generally takes the object as part of its strategic layout and obeys the company's overall development arrangement. These companies generally do not return to market, but operate as a subsidiary of the acquirer. These people also pointed out. Adhere to the dangers and opportunities coexist November 21, 2012, the gathering era successfully landed on Nasdaq, the first day of the listing rose 7.71%, and led the social concept of the collective strength, it seems that all of these people saw a brokenThe hope of ice, even some people think that the cold winter has passed. At the beginning of December, however, the SEC accused five accounting firms of violating China's business and was again targeting the shares. At the same time, the SEC released a report on the "new reporting mechanism" (also known as the whistle-blower scheme). The report shows that from August 2012 to September, the "Whistle blower" project received a total of 3,001 prosecutions from the United States and other parts of the world, including 27 for mainland Chinese companies, 2 for companies in Hong Kong and Taiwan. In the above-mentioned report, the three most reported types of financial violations are market manipulation, opaque financial information and fraudulent listing information. In recent years, some overseas research institutions have often criticized the financial quality of the company and the issue of the letter to the short. In view of the previous path to profit from aerial stocks, the whistle-blower scheme may be a target for many upcoming IPOs and listed stocks. Some people in the industry said. All sorts of things seem to indicate a slim prospect for the 2013-year stock company. However, some analysts believe that the "whistle-blower program" may not be completely bearish in the stock, for some of the fundamentals of good in the stock, but it may become a touchstone. In October 2012, Innovation Workshop CE0 Kai-Fu Lee said publicly, "in the past 2-3 months, the company has not written another look at the aerial report, not to say that there is no bad in the stock, not to short of the stock, but they heard a very strong voice of Chinese companies." The November 27, the founder of the Muddy Water company Cassen Block A "more and more difficult to short" remarks, but also represents the "insecurity" in China and the atmosphere has gradually faded. The analysts concluded that the most recent muddy waters and the most speculative attacks were Chinese companies that had been listed by Shell listings, which are now largely seeking privatisation, while the vast majority of IPOs have no real problems. As a result, there is less room for further shorting of these institutions. Hua, the chief representative of the Nasdaq exchange in China, also said that the prospects for U.S. capital markets, particularly for the recovery of the shares, are confident that there will be a dawning in the next two years. In addition, in the long run, after this short wave and the return of the market tide, many problematic Chinese companies will disappear, which is equivalent to filtering and purifying, helping investors dig out the value of truly good Chinese companies, a warning to Chinese companies listed in the US, and a boost to the level of corporate governance, Crisis coping ability and capital market communication ability. The data is the hard truth. But there is still a long way to go to break the cold winter. Now foreign investors have made a lot of mistrust of Chinese companies, and they seem to have figured out how Chinese companies are going on the market: first to beautify the financial data, then to promise a rosy market outlook, and finally to leave the executive or founder out of the way and pat their asses off. So, in the face of shorting and distrust of the market, in the stock company only with real data to say things. Because of the strong short short, there are many goodCompanies to withstand the pressure, not to be knocked down and retreat, so the financial data transparent and open, so certainly will not let short find an opportunity. At the same time, the strengthening of integrity is one of the problems they need to solve, including financial data real and solid operating enterprises, and not for the listing circle money or short-term blind development. This is the only effective way to maintain the status of listing, but also to protect enterprises in the long-term strategic development of intangible assets.