Investing in venture capital enterprises more cautious public utility stop PE property investment

The impact of the global financial crisis and the long overdue launch of the gem has undoubtedly brought unprecedented impact to today's SMEs and enterprises actively engaged in venture capital investment.　　As the mainland's recognized concept of the creation of a leader, public utility in this storm will encounter how the blow, and how to deal with such a "cold winter"? For the attention from the market, public utility chairman Yang in an interview with the Shanghai Securities newspaper, said: "We have a stable and reliable public utilities, and the company's venture in the initial project has fully taken into account the risk of prevention, so the company is a strong ' cold ' ability." "Core business stability potential is huge" public utilities will always be the core of public utility, venture capital is only as a promotion of corporate value of ancillary projects.　　Yang said that the return on equity from mass transit and the steady profits of gas and municipal utilities are a powerful guarantee for the company's long-term stability.　　The company holding 50% of Shanghai Volkswagen Gas occupies the downtown area of Suzhou River, the yellow Pujiang west of the 8 districts of gold, with Shanghai gas sales market 40% market share, Monopoly advantage is obvious, and the 2010 Shanghai World Expo will bring great development opportunities for the company's region. According to Yang, the Expo Park's natural gas transformation projects, municipal infrastructure projects, venues and environmental pollution management are within the scope of the company's attention. In addition, the company will actively participate in the development of regional economic integration in the Yangtze River delta region in the process of potential investment projects, after the merger formed a Nanchang Volkswagen gas company, Nantong Volkswagen Gas Company, the company is considering and surrounding key cities to carry out sewage treatment project cooperation,　　For the company to open up a broader development space to do the project's reserves. "The market into the trough of the economic cycle, on the one hand, can skim off a lot of bubbles brought about by overheating, on the other hand, it also brought more opportunities to examine themselves and strengthen internal control, in order to meet the next round of development to prepare fully." Yang said the company will continue to use the "1+1" model to maximize the risk, the former "1" is a stable profit of the utility, the latter "1" is able to bring high returns of venture capital, such a model is to ensure that the company smooth "Winter" the reliable Foundation.　　He also disclosed that maintaining the stability of the company is the responsibility of senior executives, although the company's share prices have hit a new low, but the company's management is still considering the timely increase in stocks, and stipulated in the period should not sell, with practical action to enhance shareholder confidence in the stock. Precautions against potential crises "in fact, since the beginning of this March, public utility has ceased to invest in PE nature." "It's not because there are no good investments, but because at the beginning of last year corporate management has felt the subtle changes in the macro situation," Yang said.　　Therefore, the steady development of the main business, shrink project investment and maintain good cash flow is the company to deal with the financial crisis the safest way to survive. "Whether it is a venture in Shenzhen or the public, in the selection of investment projectsThe choice is very cautious. "Yang said, the company shares 20% of Shenzhen venture capital, has always been recommended by local governments of outstanding enterprises as an investment target, they will be listed as guidance, and strictly standardize their corporate governance and project tracking work, even in the face of the adverse effects of macro-environment, will be actively supported by the policy." In terms of direct investment, the company has invested in Shanghai plus Lengsong Automotive Air-conditioning Co., Ltd., Shanghai Electric Branch Intelligent System Co., Ltd. and Shanghai Fei Tian Communication Technology Co., Ltd, these projects have good quality, and the main business also with the public has certain relevance.　　In addition, companies and tunnel shares, Johnson Group and other joint investment Shanghai Hangxin Investment Management Co., Ltd. is currently invested in Huaxi Energy and security Securities two projects, of which, derived from the Oriental boiler Huaxi Energy industry leading position in the rapid development of securities, stable operation, have a certain degree of risk-resistant capability. Yang also stressed that public public development in particular needs to guard against three kinds of risks: cyclical macroeconomic risk, investment project risk and management risk. He said the company, while shrinking its foreign investment, for the existing projects also increased attention to those who are not willing to go on the market, there is uncertainty of enterprises do not rule out the original investment for equity transfer, share repurchase, cash dividends and other means to do exit or stop loss treatment, to ensure that the company ample cash flow and return on investment.