Joint Venture investment agency calls for national treatment prepare for gem PE more VC Less

The first batch of 10 gem companies priced out, the first batch of enterprise IPOs has been gradually progressive.　　As an important part of venture capital and private equity investment exit, the establishment of gem has long been hot. What do VCs think about the pricing of companies that are going to be listed? Will the future be the main channel for launching?　　How can China's gem avoid repeating the mistakes of the South Korean and Hong Kong gem? In this connection, NetEase finance today connected to a number of people in the venture, in addition to the gem more similar to the SME board, institutional investors are not involved in much concern outside. Most venture capitalists say they will be bullish on the future of the gem, saying it will be an important channel to focus on.　　Among them, the Sino-foreign joint venture has called for early access to the same national treatment as the domestic capital venture. Joint venture investment calls for "national treatment" DFJ, executive director of the Dragon Vein venture capital consulting company, said that the general high price/earnings ratio of Chinese listed companies is a normal, many of the growth of listed companies are indeed optimistic. The future of the gem listing is indeed "very attractive".　　However, compared with domestic enterprises, joint ventures, foreign investment, the threshold is relatively higher. He pointed out that the current Sino-foreign joint venture investment in the Chinese market needs to be in the SFC and the Ministry of Commerce under the two legal framework.　　According to the relevant provisions of the Ministry of Commerce, the joint venture into a joint-stock company of foreign investment in the process, if the listing should at least guarantee three consecutive years of profit, and domestic enterprises are generally two years. "If so, why should we choose to withdraw from abroad under the same conditions?"　　Li Guangxin said, joint venture investment in China's gem to retreat to face a higher threshold, the current legal provisions for active ventures and the gem is unfavorable. In addition, there are few other legal obstacles to the exit of VC in the Chinese stock market, but only slightly higher in tax revenue than domestic enterprises.　　And in the domestic capital market to the enterprise pricing generally higher than abroad, this obviously will not affect the enthusiasm of venture investment. "The pricing of the domestic market is really attractive," Li Guangxin admits, with the company's three-year profit-making difference being the biggest constraint at the moment. At the other end of the scale, the legal and tax systems for offshore withdrawal are relatively sound, and the venture is better and more adept at it.　　[Page] "Gem Pricing, SME board qualification" from the higher requirements of regulation, is obviously the impact of foreign investment in the future of the gem exit one of the important factors.　　The report from Venture Capital Research Institute Qing KE Group shows that among the 105 companies that have passed the first instance of the SFC, 38 have VCPE figure behind them, and the local VC has the absolute superiority, occupies nearly two-thirds of the investment quantity. However, the initiative of the local venture has its own confusion. Li Hongyue, the project manager of Shanghai Science and Technology Investment Company, which owns the background of Shanghai municipal government, told NetEase Finance and business, from the current IPO prospectus, the future gem is more like the "small board", rather than the real sense of the high risk, high growth of the gem。 "In addition to a small number of companies, I from the technical innovation, growth rate, the existing size, I do not see these enterprises and the difference between the small and medium-sized plates." But the earnings ratios of these companies are set at more than 30 times times, well above the 20 times-fold price-earnings ratio on the SME board. "And high prices in Li Hongyue view, more is also a kind of worry." "If the price is too high, the investment is not active, the future market will face the risk of being marginalized, the exit will not be discussed." "In fact, throughout the global gem experience, in addition to the United States Nasdaq, the global existing success stories."　　Hong Kong Gem in the year because of the requirements of the basic financial indicators lax, leading to the gem has been a lack of financing, liquidity, has now become "backwater." In addition, Li Hongyue also worry that if the gem is less involved, the future venture to exit smoothly is a problem. "We can not rely on retail 1.1 points to exit, if there is no agency participation, the gem can not play a role in helping out."　　"At the moment, China's largest institutional investor, the Fund, has been allowed to invest in the gem, but billions of of the plate on the gem cannot afford access to billions of dollars of funds." Preparing for the gem is a lot of PE VC rarely, if said, institutional investment to participate in the expansion of the gem, China's local venture investment team's growth has yet to be the concept of maturity.　　Public data show that, although more than 30% of the venture board of first instance companies have a record, but the current list of listed companies, most of the venture is entered after 07 years, and the proportion of the share is very small. "This is worth thinking about a phenomenon, stating that a lot of VC is to take advantage of the opening of the gem to rob A," DFJ Director general manager Li Guangxin told NetEase Finance, the current venture behind the nature of capital investment and private equity. Through the initial involvement of the company, after a long period of cultivation, and eventually listed in the Gem exit a set of "production lines", currently in China is not mature.