Foreign investment in domestic enterprises high rate of return, investors envy envy and blame who

[Abstract] Japan soft silver investment Ali, and now the rate of return can be said to be as high as 835 times times, but the domestic investors in addition to envy envy hate, this can blame who?

Foreign investment institutions are able to achieve high returns, in addition to not only they have early excavation, medium-term nurturing, and later support those with the development potential of the professional ability of enterprises, but also a very important reason is that they are often in the long-term perspective of investment, and know to achieve higher return investment in fact, most need patience, so do not care about the gain and loss.

On May 7, 2014, Alibaba Group formally submitted an IPO prospectus to the US Securities and Exchange Commission (SEC). According to the prospectus, the investor behind Alibaba is mainly foreign capital: Mr Ma holds only 8.9% per cent, while SoftBank AG shares 34.4%, Yahoo shares 22.6%, and two foreign institutions total shareholding of up to 57%. Therefore, China Aviation oil former President Chen wrote that this is not the sadness of Ma Yun? Internet companies are working for foreigners.

The data showed that SoftBank injected two venture capital into the early stage of Alibaba's development: 2000 $20 Million trillion, 2004 $60 million. The value of SoftBank's holdings is as high as $66.8 billion, and the return on investment is 835 times times higher, even if the median value of the possible market capitalisation is $200 billion trillion.

It is inevitable that foreign investors, including many well-known investors, are jealous of envy by earning such high returns. But in fact, Alibaba Group is not the case, the Chinese Internet enterprise giants, Tencent, Baidu, Sina is basically controlled by foreign capital. In the process of creation and growth, they did not get much support from domestic investors, so that they eventually had to "work for foreigners". In the financial sector, there is a similar situation, the introduction of foreign strategic investors, although the proportion of the shareholding is limited, but the majority of the holdings of Chinese banks before listing or when the sale of the market, the cost is very low, even if the timing of the sale has not been properly selected, but also to make a

And in the two-tier market, foreign investment institutions are often with a sharp eye and trigger praise. Although a a-shares in recent years poor performance, but the QFII-led foreign institutions have repeatedly interpreted the perfect "copy bottom" drama. Whether 2005 or 2008, 2012, the more a a-share market downturn, the QFII eligibility and investment amount of enthusiasm, but the higher the final income is quite abundant.

The author believes that foreign investment institutions can obtain high profits, in addition to their early excavation, medium-term cultivation, and later support those with the development potential of the professional ability of enterprises, a very important reason is that they often look at the long-term perspective of investment, understand that the investment of higher returns most need patience, Instead of a momentary gain or loss. For example, one of the six investment principles that famous investor Warren Buffett has been pursuing is "long-term investment", whose average investment cycle is more than eight years, with a years at least.

For most of the Chinese investment institutions, the researchers ' comments are "too quick, most of them want to get married today and hold a golden doll tomorrow." "In addition, due to the current lack of diversification of the majority of Chinese investment institutions, investment focus more focused on hot industries, hot projects, and this quick success, but also to the industry's competitive behavior unnecessarily increased." In addition, the high valuation of the gem and the SME board makes the investment organization more inclined to seek short-term income from the listed investment rather than relying on the growth of the enterprise to obtain investment income.

Although the private equity funds originated in the west, but in China's development because of policy guidance to make it very rapid development, since 1995, active in the Chinese market, PE institutions have risen from less than 10 to more than 4,000, to the capital market and even the real economy can not ignore the positive effects.

Foreign private equity funds in China is a strong consortium and ready to do more impressive capital operation, although many times they may face the "acclimatized" problem but it is in the fund operation Management, resource integration and leveraged use of capital operations such as the originator. With the further liberalization of China's capital market, the exploration and development of innovative financial models is imperative, and Chinese investment institutions should learn from each other, return to the source of investment, and achieve rational development through specialization.