Corporate "bloodshed" on Hong Kong stocks PE memories good time to make money

Pan Shanghai reported that the small Southland, Yongda automobile, more and more enterprises, at low prices in Hong Kong listing.　　In the first half of 2012, 3 mainland companies went to Hong Kong's main board listing, the PE institutions behind the average book return of only 0.93 times times, for this reason, 4 well-known investment institutions carrying losses-look at the project, due diligence, investment, after the service, and finally successfully listed, but did not make money, and even to endure losses. If the Hong Kong stock market is "better than nothing", other markets abroad are more embarrassing.　　Throughout the first half of the year, PE, VC-supported enterprises, in other markets outside the exit, only the United States and Frankfurt 3.　　At the same time, the share price/earnings ratio has been falling.　　Investment institutions and the companies it invests in have only a limited choice: either give up the listing, or endure the undervaluation of Hong Kong, or quickly dismantle the overseas structure back to a A-shares queue, but the latter must bear, the structure of the queue can not keep pace with a share of the risk of freezing speed.　　Small Southland Sample Although borrow Force Niu, Ong Xiangwei in China's capital market "first show"-Small Southland (03666.HK) listed, still some stools.　　Ong Xiangwei, 45 years old, has a root is red PE resume: Undergraduate in Peking University, a PhD in foreign universities, after graduation in Goldman Sachs, Morgan Stanley two top investment banks for many years, has been engaged in mergers and acquisitions business; early 2005 airborne gome (Micro-blog) (00493.HK), as general manager, responsible for the operation of the company. In 2007, Weng resigned from Gome not long ago, joined the Sunshine property I 2¥q. The latter is the old Bull venture Capital Development Co., Ltd. (hereinafter referred to as "old Cow Venture") of the affiliated companies. Sunshine property and the old cow venture into a number of investment projects of the joint investors, and the two sides have some common directors.　　And the old bull venture is the niu of the Old Cow Foundation of the venture platform. 2009, the old cattle venture investment will hold the small Southland 5.6% equity parity transfer to Sunshine property I 2¥q, the price is 39.4 million yuan plus 1.5 million U.S. dollars, at that time, the exchange rate calculated, about the equivalent of 50 million yuan. Subsequently Ong Xiangwei in Beijing to set up Beijing still-heart food Investment Management Co., Ltd. (hereinafter referred to as "Beijing Still Heart").　　Since then, the heart of Beijing has been small Southland as Sunshine Property I 2¥q spokesperson. May 2010, the old cattle venture was written off. According to media reports, the old cattle venture capital of the entity for Chancen (Beijing) Investment Management consulting company.　　It can be speculated that Sunshine property I 2¥q is a real replacement for the old Cow venture, its entity in the territory, should be Chancen (Beijing) Investment Management Consulting Co., Ltd., which was registered in July 2007 by Ong Xiangwei. Since then, Beijing is still firmly optimistic about and investment in small Southland. 2010In the summer, the small Southland carries on the B round financing, Beijing still invests 4.4 million US dollars in exchange for the small Southland 2.7% 's equity, thus, Beijing still has the heart to hold the small Southland 8.3% stock right, simultaneously the CSI capital L.P.　　(hereinafter referred to as "CSI Capital") investment of 13.4 million U.S. dollars, accounting for 8.3% shares. B round of financing with the basis of the net profit on the gambling clause, the small Southland 2010 years after the after-tax profits of 96 million yuan, did not meet the standards.　　To this end, the major shareholders need to be in accordance with the contract to Beijing and CSI Capital Transfer 0.239% of the equity, and then compensate CSI Capital a certain amount of cash. In August 2011, the small Southland applied for a listing in Hong Kong. At that time the small Southland offering price of 1.65 to 2.2 Hong Kong dollars, for 2011 expected profit of 15.9 to 21.2 times times.　　According to foreign investment bankers, the final buyer investors bid below the minimum range, so the small Southland gave up the listing. After the failure of the listing, the small Southland for the C round financing.　　Beijing's heart and EFG Atlantis invested 15.3 million dollars and 5.1 million dollars respectively, accounting for 7.4% and 2.5% respectively. At the beginning of July 2012, the small Southland finally successfully landed Hong Kong stocks, issued about 341 million shares, the IPO price of 1.5 Hong Kong dollars, issued a P/E ratio of about 2011 years of profits 17 times times. At this price, the small Southland IPO after the market value of 1,814,250,000 yuan.　　It can be said that the small Southland more than a year, and then to raise capital, performance has also been improved, but still must be reduced prices to be listed. Meanwhile, stakes in Beijing's Chancen, CSI Capital and EFG Atlantis were diluted to 11.38%, 5.79% and 1.86% respectively. Then, the market value of their stocks, about 200 million yuan, 100 million yuan and 34 million yuan (the following table).　　Back to see three PE institutions in the past into the stock price, three institutions almost white busy: Beijing still heart and CSI Capital temporarily get close to 20% of the book Return, EFG Atlantis book earned about 1 million yuan. Such a story, it is possible in the South Beauty Group (hereinafter referred to as "South Beauty") and the back of the Ding Hui Chong to create a repeat. A year ago, the small southern sprint Hong Kong stocks failed at the same time, Qiao Jiangnan suffered a a-share ban on catering industry listing. South Beauty immediately changed its plans and began to prepare for listing in Hong Kong.　　At the end of June, Qiao Jiangnan has passed the hearing of the Hong Kong stock Exchange, if smooth, it and small Southland this difficult sister, will have landed Hong Kong stocks. 2008, Ding Hui venture in Wang (micro-BO) under the auspices of the investment to Qiao Jiangnan 200 million yuan, accounted for 10.526% of the shares. Subsequently, Ding-hui venture to take out some of the equity management incentive, the equity remaining 9.926% of the shares.　　The successful listing of Jiangnan, this part of the stake will continue to be diluted.　　A PE personage pointed out that, from the situation of the listing of the southern South, Qiao Jiangnan valuation will not be too optimistic, Ding-hui venture in this project, it is likely to only salvage costs.　　Companies have "bled" on Hong Kong stocks small Southland is not a solitary example. According to the clearBranch group statistics, the first half of this year, the PE fund investment Enterprises in the Hong Kong main Board listing 3, involving 5 funds, the average return is only 0.93 times times. That is, the price of these companies, less than the former PE institutions into the stock prices; In addition, there is a PE fund investment enterprises, landing Hong Kong Gem.　　VC fund Investment Enterprises, there is no case from the Hong Kong listing.　　The 3 companies listed on the Hong Kong main board are China's Zhongsheng resource (02623.HK), the International holding Company (03663.HK) and the Force resources (01303.HK). China's jiuding resources have been invested 11.25 million of dollars in investment.　　According to the data of the Qing Ke group, jiuding investment has lost about 3 million dollars. In this respect, jiuding investors explained: "We are not low prices, but we have with companies based on the performance of the next year's betting." This will ensure that the project does not lose money. The valuations of Hong Kong stocks for mining companies have been unsatisfactory, but entrepreneurs have insisted on going to Hongkong for listing, and we are small shareholders. Besides, this is a decentralized investment, and the impact on our funds is not that big. "Association of International Holdings (03663.HK), has indirectly been Citic Capital, Ding Hui China Fund Three, Ding Hui growth Two, respectively, investment 28.78 million U.S. dollars, 16.22 million U.S. dollars, 5.55 million U.S. dollars investment."　　To this end, Citic Capital book floating losses of 5 million U.S. dollars, ding-hui investment under the total of two funds floating losses of more than 4 million U.S. dollars. Huili Resources (01303.HK) has been invested in about $20 million trillion in international investment.　　According to the Qing Branch group, CCB International's book return is 1.38 times times, a little profit. Jian Yin International, a person told reporters that at the current price, enterprises and PE institutions still choose to go public, for enterprises, "although not how to make money on the book, but the purpose is to market financing, take new money"; for PE institutions, "not listed at all do not exit the way"　　IPO is still the main exit way of PE institution. An investment banker analysis, the Hong Kong market stock price is already very low, but because 90% of companies will break after the listing, so the major funds are unwilling to buy new shares, even if a good company, would rather wait for a second from the two-tier market to buy. As a result, most of the companies that have been listed in Hong Kong this year have cornerstone investors who have bought 1/3 to one-half of the amount issued.　　And that may continue for some time. In the face of this situation in Hong Kong, a PE fund partner sigh with regret that PE best time has passed: "Four or five years ago, PE institutions in the investment enterprises, may be attached to the right of share price of the veto, if the company listed when the IPO price if lower than the institution into the stock prices twice times, that PE institutions have the right to veto the company's Subsequently, the veto power of these terms was slowly reduced to 150%, 120%, or simply not below the fund's stake price. Moreover, the Fund can not easily exercise this right: now the enterprise to finance, your fund rejected the company's listing plan, then you can reinvest to the enterprise? If you don't, you don't invest., the relationship with the business is likely to deteriorate.　　"The PE fund partner told reporters that he had heard of a case in which a business wanted to be listed in Hong Kong, and found that the P/E ratio was too low, such as less than 10 times times, the last enterprise did not, by the enterprise before the PE investment institutions reinvestment." As for why, he said, "If you are investing in an enterprise now, it may be more than 10 times times the price-earnings ratio, the enterprise after all, after a period of time, more familiar with, so his risk is low, then he might as well continue to invest it."