IDG Shong: Why PE so RED

SOURCE: Thomson Reuters listed in the Narrow field, the growth of the listing is still to be improved, and with the increase in the price of investment projects, the future return will shrink "Caixin" (Lixin, Swiss Davos journalist) the establishment of the exit mechanism has promoted the development of private equity and venture capital in China in recent years, PE/VC　　However, the listed companies narrow, the growth after the listing is still to be improved, and with the increase in the price of investment projects, the future rate of return will shrink, IDG founding partner Shong, said in a new interview. In 2010, Chinese companies have 476 IPOs worldwide, with a total financing of 105.3 billion dollars. Of these, 221 companies get PE and VC financing.　　By contrast, there were only 154 IPOs in the United States, one-third of China's total. Last year, China's new fund financed a total of $11 billion trillion, the same as the United States, "This is the first time in both countries," Shong said. "The United States and the 2007 total of 44 billion dollars than a lot of decline, and China in the past few years to grow fast" the past three years PE and VC development from the SME board and the launch of the gem, we all make money, "Shong said. "It is harder for traditional manufacturing companies to list abroad. After the financial crisis, these companies have done well in China, and I think the Chinese plate design is based on their status. But there are still problems in the future growth of listed companies. In addition, I hope to see more services companies listed in the future. "There were 804 cases of PE/VC investment in China in 2010, with an average investment of about 7 million dollars per project."　　A similar investment in the United States has a total of 2,799 projects, with an average investment of 9.36 million dollars per single. "China's investment gap between individual projects and the United States is narrowing, project prices are getting higher, and future returns will be reduced," Shong said. "China's wind investment is too fast, and history is short, experience is not enough-the successful experience of VC is important, but also need many lessons of failure." "IDG's investment case, including Baidu, Tencent, when, search house, potatoes and many other internet companies." Shong that the focus of future Internet development will shift from user-generated content (user-generated CONTENT,UGC) to Professional production content (professional-generated CONTENT,PGC),　　That is to pay more attention to the professionalism of content manufacturing and the brand of the manufacturer. Shong said: "The higher the degree of professionalism, the higher the scarcity, the more investors make money." In terms of consumer goods, scarcity is embodied in the brand. "