The return of the valuation of gem to the rationality of the first-tier market

Yongxiang recently, when there are investors concerned about the price of the gem is falling, on the gem listed equity investment projects have negative impact?　　When we raise money, there are some potential investors who seem to be "professionally" thinking that the return on equity investment is certainly going to be affected, and they have to reconsider whether they are involved in the funding. True, if, as in some institutions before the investment style, to bid up the price to do IPO (enterprises before public listing investment) of investment ideas, to the two-tier market gem 60~80 times PE as a valuation reference, frequently press more than 10 times times or even higher PE shares listed, then,　　The current valuation of gem 20~30 times will undoubtedly have a significant or even fatal impact on the expected return. In fact, it is because of the overheating of the two-tier market that led to a period of time equity investment market valuation chaos. It is believed that the current gem valuation return to the rational range is like a timely rain, at least there are the following advantages: 1. The equity investment in the first-tier market is normalized to the rational level two market 60~80 times the illusory valuation of PE issue misled some of the investment institutions of the valuation base, in order to rob the listed resource items, competing bidding, Bachong bold, Some of the funded enterprises seem to "commodity", often easy to "lion", resulting in blind competition, valuation disorders, high prices, rational investors avoid, the style of aggressive investors raised the barbell.　　There are at least three risks to such a high-priced IPO: The company's operating performance is not at the risk of expected growth, the risk of companies failing to do so or on schedule, and the risk of a sharp fall in valuations in the two-tier market.　　And the financial enterprises on the surface of the successful excess financing, but due to the performance of gambling, listing commitments, share repurchase and other provisions of the shackles, but actually buried the seeds of contradictions.　　The one or two-tier market has always been linked, it is the irrational two market has bred a bubble in the first tier of the market, the same, the current two-level market return to rationality, but also gradually pushed the rational return of the first-tier market. 2. Increase the profit opportunities of the two-level market investors I never participate in the second-tier market speculation. But as far as I know, the adverse effects of high price distribution directly led to the participation in the gem of the two-tier market investors lose, basically no profit opportunities. The money lets the listed enterprise, the first level market and the intermediary organization one-time to make, Zeize, the enterprise one listed price is fixed in the ceiling, just imagine, who long-term loss and you have been playing like this forever?　　The market that everyone has the opportunity to make money is balanced, lasting, healthy capital market. 3. Conducive to the establishment of long-term value investment concept of excessive speculative atmosphere seriously compressed the space for rational investment, the fight against the enthusiasm of market participation, distortion of the mentality of the market, is a number of value investment agencies abhor. An effective market should rely on professional judgment, long-term vision and teamwork to achieve a reasonable return on wisdom, rather than the boil of speculators.　　The so-called harmonious development, the capital market is also so. Pioneering board some time before the rush of rain-like sudden fallTimely, "the length of the landscape should be looked at," the valuation of the gem return is the market invisible hand of the rational self-regulation, is on the one or two-tier market impulse speculative capital from head to foot poured down a cool rain, is to adhere to the rational, value investment ideas of the soul of investors. (the author is Bongming Capital Management partner, Ph. D.)