New opportunity for venture capital to be launched after drafting of gem rules

Gem launch time is increasingly clear, Shenzhen Chenhong deputy general manager of the "Opportunities and challenges" forum, said the gem related rules have been drafted, waiting for the right time to public announcements. He said that the gem will be "excellent to choose", in addition to the requirements of profit, but also to see the characteristics of the enterprise, especially in innovation to have obvious characteristics. The introduction of gem, but also for private equity ventures has brought greater opportunities for development.

Five foothold

Chenhong said that the gem market will focus on five foothold: first, to support the development of High-tech industries, nurturing new industries. Second, to support the new economy, modern services, modern energy, cultural industries and business models of innovative enterprises. Third, support the construction of new countryside, support the regional characteristic and the advantageous enterprise. The construction of resource-conserving and environment-friendly society is helpful to construct ecological civilization, to form industrial structure, growth mode and consumption pattern of saving energy and protecting ecological environment. Five is to support the improvement of entrepreneurial mechanism. High-growth High-tech enterprises, new economic, new agriculture, new energy, new materials, services, new business models of enterprises are the focus of the Shenzhen stock.

According to its introduction, the GEM system design is mainly based on three major principles. First, we should rationally determine the market entry threshold of gem. For those on the board relatively difficult, but the growth is better, is the national industrial process is very important enterprises, this is the gem to support. Second, gem listed companies should embody growth, innovation and industry diversity. Third, the Enterprise Board system design to adapt to the characteristics of entrepreneurial enterprises.

"Excellent in the selection"

Chenhong said, whether in the gem listing, in addition to the requirements of profit, but also to see the characteristics of the enterprise, especially in the innovation should have obvious characteristics. If the number of enterprises to meet the conditions of the gem, there must be a "excellent in the selection of" process. "What is the position of the listed company compared to the same type of enterprise, or to other enterprises with listed conditions?" Is it a leader in innovation? Do you have the ability to lead the development trend of the industry? Comprehensive various factors, at least a little can rely on the top, not simply said the minimum conditions to achieve the gem conditions, or also reached the small and medium-sized plate conditions, can be listed. The task of selection will be entrusted to intermediary agencies, especially sponsoring agencies.

For most companies, he says, the first step is to prepare for the norm, with financial books, tax issues and corporate governance and legacy issues being the most time-consuming to be listed.

New opportunities for venture investment

The introduction of gem, but also for private equity ventures has brought greater opportunities for development. In recent years, private equity market in China has developed rapidly. According to incomplete statistics, the investment in venture capital in 2007 has reached 3.1 billion U.S. dollars, and 428 projects, raising more than 5 billion U.S. dollars. Private equity funds, that is, PE direct investment, 2007 investment has reached nearly 13 billion U.S. dollars.

Pine Wo Capital Chairman and general manager Rofei said that the expansion of the entrepreneurial market size has brought us more opportunities for development and the introduction of protection. The rise of various market segments also brings more and more investment opportunities. In addition, the implementation of the revised version of the Partnership Enterprise Law has laid an unprecedented good foundation for the venture capital system. Limited Partnership and general partnership can be in a partnership, which is very beneficial to the development of the industry.

However, as far as the current venture market is concerned, there are still many drawbacks and challenges. Shenzhen Investment Association, executive vice president and Secretary-General Wang said that the current venture market still has three major challenges, one is looting projects, driving up prices. Listed companies, the wind investment is 10 times times, 15 times times. "Where did this multiple come from?" Now the looting project, driving up the price of the situation has emerged, we must be calm. Second, at present some institutions have a head fever, blindly follow suit. The third is the challenge from foreign investment, foreign investment has been approved to enter, they are in the mechanism, management, project competition, has a strong strength.

Wang said that it is hoped that venture capital institutions can establish a sound and scientific system and mechanism suitable for China's national conditions and rationally seize new glories.