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[Media Coverage] Kechuang board did not ban exit and return unspeakable improvement - "China Fund Ne

Date: 2019-09-03
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PE / VC exits in deep trouble unable to extricate themselves. Data show that in the first half fell to withdraw from the case 831 pen, down 33.6% year on year, although the increase was 471 pen investment company IPO cases, but in return it in multiples go down. The industry hopes Kechuang board traded, can alleviate the VC / PE exit pressure, but can really profit out, still waiting for the lifting of the ban after the performance.

Branch board quit relieve pressure

Clear Research Center data show that in the first half, China's equity market exit 831 pen, down 33.6% year on year, to be increased to 471 pen investment company IPO case, but the situation of poor returns.

July, Kechuang board market trading, a large number of institutional investment projects successfully listed on the Branch board. Qing dynasties data show that in July IPO significant increase in the number of exits, were 415 strokes, the chain increased 176.7 percent.

Paradise Valley Asset Management Group partner Zhou Min told reporters that this year, Paradise Valley investment project has four listed on the Hong Kong Branch and board, while more projects are lining up. But he said the case also quit the primary market can hardly be improved. 'Branch Board has not entered the lifting of the ban, while the board is still in the historically low valuations, some stocks of assets even after lifting of the ban, the market has not really recognize their value, we will consider the stage to continue to hold.'

Brothers Capital Founding Managing Partner Wang Jun believe that the recent focus on the domestic capital market exit is Kechuang, motherboard IPO is not fast-paced, US stocks and Hong Kong stocks slowdown after several break. Recently introduced Kechuang board to make Kechuang investment institutions is a major positive, but now it is too early to talk about the return, after the lifting of the ban depends on enterprise performance.

Vice President bedrock capital Cen game indium bluntly, Kechuang board has not formed the basis of valuation, 'a high market valuation does not mean that the secondary market valuation is high, many companies will reduce the IPO valuation, which in Hong Kong, US stocks have been many precedents. Kechuang board IPO pricing mainly to see the adequacy of funds and the amount of supply of new shares Kechuang secondary market participants, if future investment targets Kechuang board reduction in the secondary market may stir, but if the subject of sustained and rapid market, the secondary market valuation will come down. 'he pointed out that although the introduction of Kechuang board gave the project more exit channels, but it certainly does not mean that institutional investors make money.

Cowin Capital managing partner Tang Zhongcheng said that in 2017, IPO speed to become the RMB funds withdrawal bumper year. I hope this year led by the Branch board there an exit bumper year, but the GEM and Main Board of the IPO is still very difficult.

One hand and investment on the one hand vote after administration

Tang Zhongcheng said, and now investors are concerned not only IRR (internal rate of return), DPI (invested capital dividend rate) is also important, many organizations put the investment management and exit as an important work. 'The first half we put forward four priorities: funding, research, systems and geographical third point is very important, investment companies have a system, the system is part of capacities, including operations management system, risk control system, investment system, as well as investment. after the management system. investment institutions established after years of operation, has accumulated a lot of projects at the tube exit management is very important. '

Zhou Min analysis, venture capital institutions in terms of exit will meet four major challenges: First major change as sector policy occur, resulting in business not up to expectations, not to trigger the clause on gambling, how objective and rational processing enterprise survival; Second, enterprises are not suitable for domestic IPO, and will face outside the exit of the secondary market overseas unpredictable environment, how to reach a consensus with the path of the capital controlled companies and shareholders is a real challenge; the third is the IPO market, the secondary market valuation below investment valuations continue to reflect or stopped out a challenge; Fourth, institutions do not have the ability to cause secondary market investors to exit the stock price lower than the market expected deviation from the mean or too large. Therefore, to optimize the investment before the vote binding provisions, to maintain good communication with intermediaries, regulators, exchanges, and seek innovative and diversified IPO path. Also, the establishment of mutual trust and depth of listed companies, to promote the timely acquisition of listed companies to exit the program.

Cen race indium believe that the most important investment institution or the good project risk control at source. To reduce the risk, we should do a clear awareness of the company's valuation. In order not to lose money even more money, the price of shares is extremely important. We can not follow suit when the market valuation of hot fried heaven, the downturn in the market valuation appropriate circumstances to dare to sell. For the valuation of the company's grasp largely determines the success or failure of investment institutions.

Wang Jun also stressed that the investment focus is 'good company,' regardless of changes in the capital markets, there is always the opportunity to exit.

(Reprinted from: China Fund report; Reporter: Room Pei Yan)

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