Income drop 80% PE will transform gem to bring private equity China opportunity

Although there are a small proportion of PE funds have been listed company's equity, but the gem opened the opening or will be PE to the front desk. What impact did the financial crisis have on PE industry? Where is the chance of PE? How does PE industry develop in China?　　These topics have aroused people's attention. Income drop 80% PE will be transformed in the recent "Tsinghua Global Management Forum" held in Beijing, Tsinghua University of Management consultants, one of the world's largest private equity investment funds, co-founder and managing director of the David Rubinstein, a former weak PE industry in the late 80, In 2007 ushered in the peak of development, at that time around the world about 900 billion of dollars in PE funds. "However, last year's financial crisis caused the PE industry to hit hard, now the industry's total investment income is only 3 billion U.S. dollars, which is the first five average annual income of about 20%."　　"Rubinstein said.　　In this context, the industry generally believe that to meet the new round of growth, urgent change. Experts believe that the PE industry's own characteristics determine its future development trend. "Manager is the owner" the most basic model of PE is effective; the return on investment in PE has always been higher than that in the public market, and the high return will be sustained; Moreover, investors need to have more returns, which are not given by public funds, sovereign funds, etc. and, most importantly,　　Signs of a global economic recovery have emerged.　　Rubinstein believes that PE in the next few years will become more powerful, private equity companies will gradually transform into the pursuit of innovative value-added capital, the transformation of enterprise and its asset quality, to obtain a stronger ability to resist systemic risk is PE transformation of the problem should be the meaning. In addition, experts believe that the PE industry concerns are also changing.　　From the industry's point of view, PE will be more interested in the government-supported industries, from the trading approach, the proportion of the non-leveraged transactions will be increasing; from the regional point of view, PE will be China, India, Brazil and other emerging markets more enthusiastic. China PE industry needs to grow in cooperation with the development of local PE relative to the western market is still insufficient, foreign PE in China to increase the scale of investment and financing, the next few years, China's local PE companies will also be rapid development, because "ultimately this is a soak in the local culture of the industry."　　Hong Yi Investment President, Lenovo Mobile Chairman of the Board of directors Hony said.　　Rubinstein believes that cooperation with global companies is the way to the rise of local PE. "China's national conditions and cultural and legal background determines that a financial product or investment products into the reality requires a certain procedure."　　"The National Development and Reform Commission, Deputy director of financial and Financial Secretary Cao Wenxian that, according to China's national conditions, in PE and VC (venture capital) development in the early stage, can not completely copy the West, there must be moderate regulation, the size of the grasp of the government departments and market views to interact."　　Cao Wenxian said that the current regulations on PE are also being formulated, and policy makers will pay special attention to absorbing the views of the industry. Cao Wenxian said the venture capital market had been mixed from 2002 to 2003Chaos, as the gem did not launch, many VC involved in the stock, real estate field. Since then, the regulatory Department of the VC industry has been a moderate standard, the ten ministries issued a joint venture investment enterprise management measures, according to this method to implement the two-level record system management.　　[Page] PE Future "China opportunity" opened on 30th on the gem, for the local venture capital institutions, finally have the inevitable exit mechanism.　　Industry insiders believe that, under the stimulus of wealth effect, the PE industry such as venture capital institutions will become more easy and efficient. Hony said that even the very young Chinese PE, its higher value-added, more sophisticated capital operating capacity and other characteristics of the financial crisis has been proved.　　Although limited to the current regulatory regime, PE to China's economic recovery still played a exemplary positive role. "In the financial crisis, the public capital market is basically stagnant, the IPO also stopped, and this is precisely the time when companies need the most money, in addition to banks in loans, only PE in investment." The role of PE in economic development will become more and more obvious in the future.　　"Hony said.　　However, Zengqiang, founder of Xinyuan Capital, said that in the long run, the important opportunities and challenges of PE in our country are to help Chinese enterprises to carry out overseas mergers and acquisitions, and in the process to produce China's first class investment bank. Industry insiders believe that, in addition to the development of local PE industry, international PE eyes are on the growth potential of the Chinese market.　　Statistics show that this year, PE industry has more and more investment transactions took place, the first half of PE investment amounted to 6.5 billion U.S. dollars, and last year China PE investment amount of 9 billion U.S. dollars. ' There's already a lot of deals happening in Asia, and China is the most valuable investment, ' Rubinstein explains. China's economy of 8% to 10% annual growth rate, with a very attractive private equity investment environment "the U.S. PE scale accounted for 1.4% of GDP, Asia is 0.4%, and China is 0.2%, so relatively speaking, the Asian industry less competition, the price advantage is obvious, capital scale is also relatively large." "Rubinstein said.