Venture capital: What the 200-day market brings to China

Gem: From head to toe is the new Shenzhen Innovation Investment Group Co., Ltd. President Li Wanshou China Gem Market has been launched for more than 200 days. In the infancy of the gem, we have placed too many expectations and blessings. The birth of the more than 200-day gem has also given us many surprises, how many worries. Among the surprises are at least: (i) rapid development. As of May 24, 2010, the listed companies that have traded on the gem have reached 82, with a total market value of 355.5 billion yuan. The speed of its listing not only exceeds the domestic SME market, from June 2004 to date, the number of listed companies in the SME market is 406, the annual number of listed 68. But also more than the gem market in Hong Kong. Since November 1999, the number of listed companies in Hong Kong's gem market is 174. (b) The gem market has become the main battlefield of VC exit. As of May 24, 2010, the market has been listed and has been a total of 88 gem enterprises. Among them, VC supported the number of companies for 51, accounting for the entire GEM Enterprise total of 58%, showing the gem market has become VC exit the main battlefield. Deep venture investment enterprises accounted for 10% of them. (iii) The GEM market has greatly stimulated the entrepreneurial enthusiasm of entrepreneurs. Gem every day tells a new wealth myth, every day in the refresh of a new wealth record. Its huge wealth effect will inspire the entrepreneurial enthusiasm of entrepreneurs. At the same time, the gem market has also caused some of our concerns. (a) Gem enterprises may be difficult to carry the existing high P/E. As of May 24, 2010, the average P/E of China's gem market is 64.30, not only far higher than the U.S. Nasnac market, China's Hong Kong gem market, the average valuation, but also higher than the domestic plate market valuation level. The basis of high P/E is the high growth of the enterprise, and from the annual reports of the first 28 companies, there is still a small gap between their performance and investors ' expectations. Gem Enterprises rely on high P/E from the market to get too much money, its wealth carrying capacity will face a huge test. (b) The industry distribution of gem Enterprises is not reasonable. In the listed 82 Gem Enterprises, the manufacturing industry accounted for 48, information Technology 23, the total accounted for more than 87%; the supervision level for the project evaluation followed the Board of the stock market review of the thinking, in the development of the composition of members, audit ideas, evaluation system and other aspects of innovation is not enough. 200 days for a person's growth time is too short, for the gem is also so. Think of it, the Nasdaq has been birthdays, Hong Kong's gem market has gone through 10 years. And we're just getting started. Finally borrow the "spring" of Mr. Zhu Ziqing as the end of this article. Gem from head to toe, are new, it grows. GEM: Strategic emerging industry growth has a new impetus Shenzhen Venture Investment Association executive vice President and Secretary-General Wang in the fight against the impact of the global financial crisis in the birth of China's gem, although opened only 200 days, still in infancy, but its successful smooth operation, has shown exuberant vitality and abundant innovation. Listed enterprises almost cover our country urgently need to develop strategic emerging industries, and most of these industries are the industry's leading enterprises, in the pioneering board of meticulous cultivation and strict norms, is towards a more professional, large-scale, standardized direction of rapid growth and expansion. The gem set up and run a short 200 days of practice proved that the SFC formulated and implemented around the national independent innovation strategy to speed up the construction of multi-level capital market decision-making is completely correct. Admittedly, the emergence of China's "emerging + transition" period of the gem in the early days of the operation of the new situation, new contradictions and new problems, such as "Two high super" and the recent stock market under the current "break", and so on, not like some people called "chaos", and even someone to sing, and this is just proof that the gem is high growth, Risky emerging capital markets, and the growth of listed companies is not a straight line. It is understood that Nasdaq has appeared 1/3 of corporate shares below the IPO price, and who accused it of "chaos"? Some new problems appearing in the running of gem are the normal reflection of high growth and high risk. On the one hand, the regulatory authorities have attached great importance is being and focused on the solution; On the other hand, the masses of people, especially some commentators should hold a kind of care mentality, with sufficient patience and rational thinking, targeted to put forward the ideas of reform and innovation, and jointly cultivate the gem healthy, smooth and rapid growth, and use for reference and innovation of two weapons , resolutely take China's own road, and achieve my nasdaq! with Chinese characteristics Rational market will not support high valuations for a long time partner of Tan Wenqing Investment Management Co., ltd How much money can be used to make new shares must be made money, based on two reasons: 1 China's securities market has always welcomed the innovation, new policy market opportunities will be favored by investors, Past experience has proved this; 2 the world if only two gem good, it must be the United States Nasdaq and China's gem, because the United States is the world's most basic technology innovation and the most dynamic market, while China is the most innovative and most born of the land of entrepreneurs, In the business model and enterprise innovation, the most dynamic, can provide an endless stream of outstanding high-growth enterprises, so that the gem market performance extraordinary. The current gem up to a hundredfold PE I look like this, just come out of the new things we too like, and last year began a lot of capital, real estate by the government tightly controlled, not too much investment, so this enthusiasm can be understood, but the long-term will certainly have a return of value, a rational market is not long-term support such a high valuation. [Page] China Gem and the Kelly board is not the same as the new Executive vice president and the director of the listed department Huangliang we think that the comment on P/E, the stock price high and low, to see what enterprises, the enterprise itself management situation, the same industry companies, size, management costs are different, some real estate Each company has a different price/earnings ratio. For ChinaCompanies, Singaporean investors must know what the company is doing, only the quarterly, half the annual report is not good, investor relations is important, that is, the decision to determine the valuation factor in addition to the fundamentals, investor relations is very important. Moreover, the P/E ratio is to look at the previous, investors do not look before, look to the future. In the listing process, the Kelly board and China's gem is also different, in the Kelly board listing does not need SGX and the financial authority of the synchronous audit, listing eligibility to see the sponsor, by the sponsor supervision, the current 40 sponsors only 11 sponsors can be listed on the sponsorship company. At present, some investors mistakenly believe that the Kelly Board is Singapore's gem, but Kelly board is not a gem, nor is it a new sanbanxi, mainly to help the growth of high companies, regardless of size. There is only one Chinese company listed on the Singapore exchange, China Heng Yang Petrochemical Logistics Co., Ltd., the issue price per share of 0.38 new yuan, the size of 18 million shares. SGX has no preference for the industry or the type of business, and does not make the so-called tendentious judgments, nor do we think it is capable of judging that investment banks offer advice to shareholders. At present, China has become the world's most active IPOs, and Singapore's 40% of listed companies from overseas, as the region's most international market. Currently, a total of 154 Chinese enterprises are listed on the Singapore Exchange (SGX). 90% are private enterprises. From August 2009 to April 2010, 12 Chinese companies were listed on SGX. In April, China Minzhong Organic Food Co., Ltd., a Chinese vegetable-growing processing enterprise, completed its initial public offering in Singapore, raising 237 million yuan (USD 170 million). Minzhong food issued 197.344 million shares, of which 119.602 million shares for the new shares. Looking forward to the Gem accelerator role of the China Venture Capital Research Institute, Deputy director of the Cai Ying pioneering board launched for the Chinese venture capital industry to play a strong heart needle, in other policies, China's venture capital industry has entered a rapid development phase, completely changed the "two outside" industry mainstream model, into the "two "Mode of operation, the establishment of renminbi funds, domestic capital market exit has become the primary choice. China's large private capital also gradually take the venture capital as a hot investment channel. The data show that gem listed companies behind the venture capital investment agencies are more in the expansion of the enterprise, investment into the market more than half of the time in 2 years, indicating that these investments are mainly in the middle and late investment, only about 10% of the investment holding period remained at more than 3 years. At the same time, gem listed enterprises belong to the industry also did not get rid of the traditional industry restrictions, did not really achieve "two high six new". We look forward to the gem and from all walks of life to the gem understanding of the gradual maturity and improvement, the gem can really play the role of innovative enterprises to do a strong accelerator, in conjunction with the venture capital institutions, the cultivation of Alibaba, Tencent, such a unique enterprise out.