Ye Tan: The Light and heavy of gem

Gong, managing director of JPMorgan Chase in investment banking, said June 4 at the China Venture capital forum that China's current equity investments and IPOs are valued at as much as 15 times to 25 times multiples, and that PE (stock price/earnings ratio) has a hidden risk in the future.　　Secondary market transmission of the same information, the gem is prone to more than a few times the issue of multiples, plus tens of billions of yuan of super raise funds, showing the hungry pursuit of growth, innovative concept of the company. The Happy people call it a good thing, and the weary are called the Chinese stock market bubble mania repeat. The so-called good thing, the most appropriate understanding is that, after all, money to the entrepreneurs in the hands of the real economy to operate, than to create a Clivia bubble or real estate bubble better.　　People who think of the bubble mania said that all of China's two-tier market has experienced frenzied speculation, from the motherboard, the board to the gem, no exceptions, fried, leaving the market is a feather. It should be admitted that the gem market and the PE market bubble, in any case, more than 15 times times the PE P/E ratio is already too high, on tiptoe can be Dasnack in the era of the dot-com bubble market in the United States.　　As a result, investors will have to be prepared to lose money if companies that market or are ready to go public are exposed to a weak stance. If the enterprise shows the quality of leading the new economic group, even if there is a short fall, it can still be said to promote the transformation of China's real economy has contributed. Every time America's new economy rises, it has an ultra-high premium, with investors flocking to the airwaves, railways, automobiles and the Internet.　　After the awareness of those who lose their money, but because of strong financial and good institutional support, and ultimately let the United States in the new economy led by the global economy to become the leaders. New technology companies are the scarce resources of the Chinese market, entrepreneurs are the Chinese economy in the field of scarce animals, the high valuation of scarce resources is not excessive. The scary thing is that some traditional companies, companies with bad credit, or people with no entrepreneurial qualities, weeding under the packaging and get a high premium.　　These enterprises soon exposed the false technology of the true face, they get the money to buy a car, the joy. From the gem of the fund can be seen some gem listed companies have been carried away. Shenzhou Thai Yue has 1.3 billion yuan of super raise funds, after the listing of 421 million yuan to buy the first building in Beijing Chaoyang District of the 16-storey office real estate, is called the gem of the company to buy the largest side of the company. Pathfinder, Meteno, the source of the company's home purchase plans are more than 20 million yuan. There are a number of companies are eager to silver shares, le Pu medical and so on have been included in the purchase plan for the use of funds list. A company to buy a house has a company to buy land, ready-made houses do not see, simply buy their own land and then build. China testing will exceed the proceeds of the 135 million yuan for the construction of China's headquarters and South China testing base, of which 18 million yuan to buy land, 164.85 million yuan for the headquarters Building and laboratory building construction and renovation. Star Models, newWe have also bought more land for industrial use. One of the reasons people give high valuations to gem companies is that these companies are light assets, but these companies are on the go in reverse, buying heavy assets and running in the ranks of traditional companies. Other companies listed before and after the credit has been questioned, including Hepalink certification, as well as the motherboard it concept to win the patent to try to market in the SME Star Network tax Czech.　　In addition, such as the gem of the race for intelligence, NETAC technology and other enterprises, profit prospects have shown the plight of insufficient stamina. Venture capital and the enterprise jointly committed a problem is quick success, the first year of risk investment into the second and third year to make a lot of money, this is not a venture capital, this is called PE corruption.　　In order to achieve as soon as possible, some enterprises and investment companies often signed the unthinkable to the gambling agreement, such a gambling agreement to cover the Mengniu, has retired from the city of Yongle and many other enterprises, so that entrepreneurs lost judgment, but also let investors leave the essence of venture capital, and become a gambling expert. Despite the bubbles in PE, China's venture capital is still plentiful. According to the Chingko Research Center, currently listed in the Gem companies, 80% of the company behind the creation of investment institutions, and these institutions are invested in more than 2 years, book yield more than 10 times times.　　Two years, 10 times times, can be called an outbreak, because there is such a wealth effect to lead, just let more money into the field of venture capital. Venture capital and Gem do not need the hand of administrative intervention, but need the rules of the game.　　For example, the gem opens up to an increasing number of real economies, does not allow underwriters to act urgently as an investor in an enterprise, prohibits betting agreements, and penalties the dishonest to the market forever if there is a false statement and insider trading. With the rules, the gem bubble is likely to turn to benign. Otherwise, the gem will become another vicious bubble of the carnival feast.