The success of GEM requires the courage to innovate the system

Last week, the Cai investment Circle invited Mr. Erhai, managing director of Lenovo Investment, to visit the program to talk about the idea of an upcoming gem. Two sea is the second time to visit the "Cai Investment Circle", earlier last year, we have made a special stage on the gem of the program, it is the gem is ready, unfortunately long-awaited, and let us bitter wait for more than a year.　　In any case, from now on, the determination of the government authorities is very strong, the people, especially the entrepreneurial and venture capital institutions are very good, in the global effort to go out of the economic crisis at the moment, the gradual improvement of our economy will undoubtedly give countries a strong signal. Let us together look forward to the arrival of the gem. Last year's photo hope Gem Erhai Introduction gem finally open. What will the gem bring to us? VC, PE, entrepreneurs and the first-tier, two-level market investors are thinking about this problem. How can these people achieve their goals? In other words, these people can make money.　　This is the reason for the long-term existence of the gem. A good enterprise is the foundation of many can win, certainly not 0 and game, the system should have new value to create. This requires enterprises to be able to continue to grow, creating more and more value.　　Only in this way can market participants win. We are talking about a good enterprise, the definition is relatively simple, is the continuous growth of profit enterprises. In order to keep increasing profits, enterprises must have a continuous competitive advantage. This is actually a good enterprise standard.　　In the past, I have pointed out which elements of enterprises can be sustained, including market position, brand, user habits, scale, unique resources, technology and models, team and culture. In fact, VC, PE investment is an important task is to select a good enterprise.　　Gem Listing audit purpose is to let excellent enterprises listed.　　How to show good business? This is inseparable from the development of society. Nasdaq's success is inextricably linked to American technological innovation.　　Technological innovation has created great companies like Microsoft, Cisco, Yahoo, Google, ebay and Amazon, and Nasdaq has been able to provide financing and trading platforms for these companies. China's current historical environment is a great opportunity to create innovative enterprises. The Chinese feature is that industrialization and modern technology are coming together, unlike Silicon Valley. China's opportunities are as follows: urbanization, consumption escalation, industrial upgrading, clean technology, outsourcing services, network technology to the traditional economic infiltration and so on.　　The good performance of a large number of Chinese companies on Nasdaq proves that there is a real opportunity in China. Especially in recent years, China VC, PE industry rapid development, screening and breeding a lot of excellent enterprises.　　In addition, China's institutional environment gradually improved, entrepreneurial entrepreneurs gradually mature also makes the quality of the entrepreneurial team, the quantity has been greatly improved.　　Today's China can appear a large number of innovative enterprises, GEM is a foundation. The next question is, how can these good companies become masters of the gem?　　Institutional arrangement is to protect the gem of some institutional characteristics is gradually become clear. Gem is still the approval system, rather than the filing system, which is the same system as the motherboard. However, this is not the same as overseas. Overseas is the so-called audit system, the basic is to achieve the standard, some people can buy.　　In the examination and approval system, the issuing and auditing organizations decide the characteristics of the listed companies to a large extent.　　The difficulty of examination and approval, market liquidity, price/earnings ratio, the convenience of the issue, maintenance costs and other features to be clear down, the real good enterprises will move up. For internal-funded companies, public offerings can only be in the domestic, or a A-share of the motherboard and small and medium-sized Enterprises Board, or gem.　　But for companies that can make a variety of structures, they are sure to compare different opportunities carefully. Also, if the gem is not attractive enough, companies can also carry out private placement.　　After a certain volume, on the motherboard. If, the gem's risk preference is partial conservative. This plate will be biased towards the domestic a-share SME version. There may be a lot of stable profits, but not particularly explosive growth companies.　　This kind of gem only increases the listed index of domestic enterprises, and has no special attraction for the company of innovation and high growth. If risk appetite is biased. Many companies may disappear from this section, but there may be a lot of great companies out there.　　This may require that investors in the tier two market have adequate affordability and discernment, and that there is a reasonable institutional arrangement and sufficient courage for the issuing and auditing bodies. Conclusion Enterprise listing is a milestone of enterprise development, but not the end point. Gem to provide enterprises with a platform for financing, the community is generally welcome. The key to run the gem is to attract good enterprises to the gem listing, which requires good institutional arrangements. People are waiting to see the veil unfold.　　As a VC investors, I wish the future of the gem can achieve a total win, can be successful! The success of GEM requires the courage to innovate the system, but also need to have excellent enterprise to do the foundation. Chenhong, vice president of the Shenzhen Stock Conference, said at a meeting that the final gem is what it is and that all participants work together.　　"Sow and reap," let us work together. Note: "Cai dialogue Erhai: Imagination Gem" will be launched, please look forward to.