Shen: Gem price/earnings is unpredictable

Sequoia Capital Founding partner Shen "China entrepreneur Network" Sequoia Capital founding partner Shen in the capital market, in 2010, by Sequoia Capital "packaging" and the U.S. listing of Chinese enterprises to 6. According to statistics, the current gem P/E ratio of up to 84.35 times times, the market on the gem bubble exists widespread concern. What kind of impact does this have on the private sector? Shen Frank, the future gem price-to-earnings ratio will reach what level, it is "too difficult to judge."　　(Li Cong) The following is a statement by Shen. I feel like we're going to have to take a little bit of an investment, the last value of the company.　　We from enter to come out to earn is two money, one is the company profit growth of money, the second is PE money. Now the gem and the SME board than the overseas Chinese listed companies, a high P/E ratio, this time the society appeared on both sides convergence regression. Our investment can only grasp the growth of corporate profits, the price/earnings ratio is not grasp, if you feel that you can go into the low P/E, high P/E, it is unrealistic. The key lies in the more reasonable PE, finally can grow.　　As a fund, the most important job is to see the enterprise can have a sustained profit growth.　　In the direction of investment in the 2011, there are four industries which I am more concerned about, one is the technology media, including the Internet, the second is the consumer products and services, the third is the health industry, and the other is the new energy and clean technology. After all, the private sector is still relatively short, only 10 years, and half of the time is almost closed, so the next ten years will certainly be better.　　This industry from the talent reserves, from the exit mechanism is indeed really should be a particularly good 10 years.　　In addition, I feel that the biggest challenge in the next ten years is competition, more and more participants, a lot of old faces in the last decade, I see many partners become senior partners, many recruits joined in the past few years, the entire investment of the talent team is expanding, money in China, overseas are many. Investing in China must be a very interesting thing, in this case the industry will be more and more fierce competition, in fact, the biggest thinking is how the fund itself positioning, can be differentiated in the competition. Manufacturing or other industries in the blue ocean and the Red Sea, this industry must not appear in the Red Sea, the participants in the industry, I hope that in the differentiation among the players to find their position, to be able to earn money.