Local PE gain great development in the next 35 years will enter the golden period of development

Merrill Lynch, China's president, Erfei for the first time that the next 3-5 years are "the golden age of private equity investment" and that PE focus will be shifted from the US and Europe to China. In the past, the turmoil of American subprime debt has affected the financial sector's proximity to crisis. Yesterday, the first China International Private Equity Investment Forum held in Beijing, the NPC Standing Committee vice chairman Cheng, the National Social Security Fund Council vice chairman Zhongmin, the State Council Development Research Center Institute of Financial Research director Xia, Beijing Equity Exchange President Xiong and Merrill Lynch China Regional chairman Erfei and other financial and investment industry experts and scholars attended. Experts believe that the U.S. and European countries under the subprime crisis, the next 35 years will be China's PE development Golden age. Private equity investment in the Eighties or Nineties of the 20th century successfully discovered and nurtured the Intel, Microsoft, Yahoo and other technology companies, in recent years, and actively participate in industry and enterprise restructuring, optimize the industrial structure. The huge investment opportunities in the Chinese market have attracted the world's top investment institutions to enter in a large amount, and foreign private equity investment in China has nurtured Mengniu, Suntech and the mass media and other well-known enterprises, but also led the Chinese local venture capital or venture capital (VC), including private equity fund rapid growth. Private equity seven or eight in China at the forum, Merrill Lynch China chairman Erfei said for the first time that the next 3-5 years, is "The golden age of private equity investment", PE focus will be transferred from the United States and Europe to China. In the past, the turmoil of American subprime debt has affected the financial sector's proximity to crisis. Private-equity investments in the United States operate in a way that buys holding. Private-equity investment is only 20% to 25%, no more than 30% of the money, and the rest is financed by banks. Now banks have been hit hard, and it is impossible in the short term to come up with relatively cheap money. Erfei analysis, these funds need to spend money, now the world's funds are targeted at Asia. Asia is concentrated in two countries, one is India and the other is China. The money is about 70% to 80% in China, 20% to 30% in India. So from the direction of capital, China's PE investment is a golden age. The second reason is that some state-owned enterprises and private enterprises in the overseas listing, are relatively successful. They already have the basic conditions to attract relatively large sums of money overseas, that is, in the form of private equity funds before or after the IPO. Therefore, China should attract more international capital, and continue to improve the investment environment, such as the legal environment, that is, a greater support for private equity investment. If we seize this good opportunity, we can attract international funds. PE in China's annual average yield of up to 35% 2001-2002, the Gem Brewing launched, the local PE is very active. After that, as a result of the dream of a cast plate was shattered, this time venture capital and local PE again into the trough. It was not until 2006 that the local PE was renewed. Li Wanshou that from 1999 to now, China's local PE has beenA significant development, mainly for the following reasons. First, the implementation of new laws and regulations, as well as the IPO policy, as well as the introduction of relevant tax incentives, and the heat of the capital market, as well as the introduction of the Gem and so on. Whether it is a host or a medium-sized board, the opening of a full circulation market, agent transfer system and property rights transactions are active, PE development is very important market environment. Second, China's stock market entered a long bull market, compared with foreign capital markets, stocks benefited very handsomely. The issue of stock prices and P/E, the activity of the transaction, the performance after the listing is very good, the cost of the issue, the cost rate is very low, the cost of listing is very low. All these factors make China's a-share market much attention. Thirdly, the international capital market also holds a positive attitude towards China's capital market. So many capital markets in order to attract Chinese enterprises to go public, have adjusted the relevant laws and regulations, speed up the speed of the listing, improve the efficiency of the listing. Around us, Singapore, South Korea, Japan are very friendly to Chinese companies to reach out, there are many countries ' capital markets to attract Chinese companies to go public. Four, many countries ' capital markets are adjusting the environment, speeding up the listing of enterprises, their understanding of the capital market is also improving, the efficiency of the capital market is also improving. But Li Wanshou that, although in recent years China's PE growth is very fast, the development momentum is more and more fierce, but from the indicators, the number of raise and raise the amount of money, only equivalent to about 1/5 of the United States, the scale is very small. In terms of the amount of investment, it is only 1/5 or 1/6 of the United States. However, from the income point of view, at present, whether the local PE, or foreign PE, in the Chinese market, the rate of return, very high. In China, yields are above the international average, with an average annual return of more than 35% per cent. PE most institutional and mechanism advantages Forum, Beijing Equity Exchange President Xiong that PE investment in China, has a huge space for development. The first is due to China's huge demand. Xiong analysis, China has always been a direct investment in the shortage of countries, and in the direct investment of all investors, PE is the most institutional advantages and mechanism advantages and operational advantages. In addition, in a variety of investment groups, only PE is the most fully integrated funds and human resources, its incentive mechanism in place, it is more lenient than other funds of supervision. Therefore, PE will be China's capital market investors most active, a team. Of course, any funds want to enter the need to consider exit, PE can exit, but more to consider the non-mobile market. Therefore, the equity exchange platform such as property exchanges will play an important role. The flow of property right is the flow of the state-owned enterprises under the sunshine, and then it develops into a service for the state-owned enterprises, a service for the financial state-owned assets, a flow service for the foreign equity, and the stock flow of the private enterprises. Xiong revealed that the Beijing equity exchange over the past 1 years of turnover has been to 63 billion yuan, 2008 will alsoA new level, but also to PE investors to leave a huge investment opportunities. Social Security investment three main lines of income 300%-400% Forum, the National Social Security Fund Council Vice President Zhongmin revealed that the National Social Security Fund not only in the securities market has a certain market share, in the private equity also carries on the investment and the operation. Zhongmin revealed that in the past 5 years, the Social Security Fund has made 4 private investment projects, investment Bank of communications 10 billion yuan, investment in Bank of China 10 billion yuan, investment in industrial and Commercial Bank of ICBC 10 billion yuan, investment in Beijing-Shanghai high-speed railway 10 billion yuan. Of these three banks have been listed in Hong Kong, the current total market value of about 140 billion. Another private-equity investment in the National Social Security Fund is a fund for equity stakes in the emerging and upcoming funds. Both participate in raising funds, but also share the management company. At present, the first one is an industry investment fund, has been running for 4 years. The fund invested 150 million yuan, the result of 4 years of operation is 70% of the investment project has been formed, there are three companies listed in a shares, the yield is quite abundant. Another is the Bohai Industrial Investment Fund, investment 1 billion yuan, while investing in its industrial management company. At present, the Fund's investment is running normally. Zhongmin that the reform of the state-owned economy in the Chinese market provides an effective space for the National Social Security Fund. The State Council has approved the investment of the National Social Security Fund in private equity funds, requiring social security to provide support and space for the reform of state-owned equity. Zhongmin said that social security in the investment of several banks, are in the process of their shareholding system reform involved. The Beijing-Shanghai high-speed train also intervened when it set up a fund-raising company. Therefore, in the Chinese market, as long as the state-owned economy reform of the market is constantly expanding, the strength is constantly strengthening, the National Social Security Fund will have a choice. Should support to encourage domestic PE to go out to the Development Research Center of the State Council director Xia, China's private equity (PE) market development momentum is very good, but the overall scale is not enough, he made four suggestions for the development of China's PE market. First, should be comprehensive to overseas PE study, learning its operating mode and operating procedures, should be in the domestic market and equity as a condition, as far as possible with overseas PE joint venture, cultivate domestic talent, accumulate experience. Second, support to encourage domestic PE to go out. To encourage private enterprise-led PE towards international financial market. Domestic PE going out should be extended to financial service industry, resources industry and mining field. In addition, we should take advantage of the current high market value of telecommunications and banking, equity and stock exchange for world-class financial institutions and enterprises. Third, as soon as possible to improve the relevant measures, in the domestic market to encourage the establishment of foreign exchange funds, to encourage domestic registered joint venture PE institutions in the domestic market to issue renminbi bonds, to the relevant departments to buy foreign exchange. Finally, China's securities regulatory departments and commercial departments should coordinate research, the private equity fund acquisition should be differentiated treatment, improve the relevant system.