Chinese concept whether Chinese bubble, different angle, the conclusion is different

Abstract: May 4 night, Renren in Beijing international trade Three, a floor of the Chinese Grand Ballroom held a celebration feast. In addition to Renren's domestic executives, the main participants are media reporters. Activities have been formatted: There are leaders to speak, there are dinners, there are sweepstakes, and finally

May 4 night, Renren in Beijing international trade Three, a floor of the Chinese Grand Ballroom held a celebration banquet. In addition to Renren's domestic executives, the main participants are media reporters. Activities have been formatted: There are leaders to speak, there are dinners, a lottery, and finally the founder of Renren Chen video link-to receive interviews with domestic media reporters, but will avoid all the sharp questions.

The "Fun with the people" on the market has become a procedural ritual for the Internet listing, first Youku, 360, now turn to Renren, next will be the network of Qin, Century Jiayuan, Phoenix New Media, they will be in this month 5th, 11th, 12th landing on Nasdaq, will be listed enterprises and rice net, thunder, Tudou and so on.

The controversy over whether the "Chinese concept" is a "Chinese bubble" has already begun when Renren holds a celebratory feast. Zhang's recent interview with this reporter said that "China concept bubble serious", he thought "This is after the 2001 Nasdaq crash, another High-tech bubble", the difference is that the last bubble named ". com", this is the bubble in the "Chinese concept" name.

Luebbe, chief analyst at the consultancy, said: The Chinese concept is a Chinese bubble, different angles, the conclusion is different, at present the company's profit level, there is overheating, but not bubbles. He explained: In 2001, when investors were expecting the Internet 10 years earlier, there was a problem, and the wave of overheating was just a year and two years ahead of expectations.

The upstart

This is the best time for internet entrepreneurs and investors

In Friday (April 29), Renren raised its IPO price from $9 to $11 to $12 to $14, up 30% from previous bookings, and raised its financing scale from $507.8 million to the current $690 million.

Renren's total equity is about 1.185 billion common shares, with 3 common shares of 1 ads, totaling about 395 million shares of ads. To increase the issue price, the company's market value is rising to 14 U.S. dollars, the total market value of about 5.53 billion U.S. dollars. Chen a boat net worth also bullish, its shareholding ratio is about 22.5%, the market value amounted to 1.245 billion dollars.

In addition, SoftBank has a stake of about 34.2%, with a book value of $1.892 billion. Soft Silver 2008 Investment in Renren, the amount of investment of 384 million U.S. dollars. The investment, SoftBank received about 5 times times the return.

In addition to Chen and son, Renren will produce a lot of online upstarts, including Renren executives and renren investors.

The story of "batch making rich" is not scarce. Dangdang listed, Guoqing, Yu husband and wife share 43.5%, when the market value of the market up to 2.847 billion U.S. dollars, guoqing husband and wife net worth of $1.238 billion. Youku listed, Koo shareholding up to 41.48%, Youku market value of up to 7.17 billion U.S. dollars, Koo personal wealth of nearly 3 billion U.S. dollars. Qihoo 360 listed, founder Zhou 祎 shareholding 21.5%, Qihoo 360 the highest market value of more than 4.2 billion U.S. dollars, Zhou 祎 book value-added up to 906 million U.S. dollars.

The story of the rich continues, the Net Qin, Century Jiayuan, Phoenix, Rice net, thunder, Tudou, the day of listing, the same story will be staged.

NetQin is an extreme example. NetQin submitted a prospectus the next day, CCTV "3 15 party" revealed the FEI Liu Software and Network Qin tried, partnership fraud smart phone users money behavior. Under the influence of CCTV exposure, industry experts, competitors have predicted that the Network Qin will terminate the listing. Let their crash glasses is that U.S. investors still pay for the NetQin, a successful listing.

Another example is Tudou. Potatoes earlier than rivals Youku submitted prospectuses, but the divorce case between founder Wang and his ex-wife Lei failed to go public before Youku. Wang Micro hate, can only do "Koo second". Fortunately for the king, investors are patient enough to be willing to pay their bills and invest in his stock after they have finished their housework.

This is the best time for internet entrepreneurs, investors, and the upstart. Charles Zhang thinks the worst is coming, "it is a bubble, it will burst, no matter how beautiful".

Investor enthusiasm surges

In this round of IPO, some companies are actually "wounded" on the market

"P/E is the best indicator, and it is an anomaly that many unprofitable companies now have high market capitalisation," Zhang said. ”

Youku listed, the first day of the stock market soared 161.25%, Qihoo 360, the first day of the rise of 134.48%; Dangdang listed, the first day of the rise of 86.94%; Macaulay listed, the first day of stock prices soared 56%--the enthusiasm of U.S. investors, creating a wave of "China concept" related to the stock market spectacle.

Luebbe: The bubble surges, from the pursuit of the Chinese concept. Statistics from the capital of the Qing branch show that in 2010, a total of 39 Chinese companies listed in the United States, accounting for nearly 1/4 of the annual U.S. market IPO volume, the United States in 2010 the best performance of the 10 major IPOs, 4 are from China's companies.

In the 2011, investors ' enthusiasm for the Chinese concept was not reduced. The data of the Qing branch capital showed that in the first quarter of 2011, the investment amount of domestic internet VC was nearly 700 million U.S. dollars, almost the amount of Internet investment in 2010.

Luebbe hope that the enthusiasm of investment will lead to a new wave of listing shengjing. After the Youku, when, search the room, easy car, Macaulay Lin is equal to 2010 to the United States listed after the next two years, Tudou, Renren, Network Qin, Shanda literature, the century good margin, happy, Thunder, Taobao, where customer-prudential products, Phoenix, and news, 56 nets, Jingdong Mall will be landed on the Nasdaq.

Zhang said that behind the dotcom bubble was the investment shift after the US economy experienced the 2008-year subprime crisis. China has been a solo in the global economic crisis, the emerging markets led by China have stabilized in the aftermath of the crisis, while the US-led developed markets are fraught with uncertainty and investment in China as a consensus among US investors.

Luebbe also agreed that in this round of the IPO, some companies are actually "wounded" listed: In order to meet the "shipping" needs of venture capital, not the needs of entrepreneurs. After the venture capital exits, the pressure of performance will be a heavy burden for investors to meet.

Zhang's example video industry: Because of the excess capital, video playback platform and content manufacturers talk about the price without advantages, so fierce competition, the recent video industry profit is impossible.

Luebbe that as Chinese Internet companies IPO, the "scarcity premium" advantage of IPOs will gradually stabilise.