5%, monthly increase of 0.65%, has increased for 11 consecutive months.
This year, the openness of the financial market has been highly recognized, and the Chinese stock market and bond market have been included in more and more international mainstream indexes. And on November 8, indexing company MSCI announced that it will increase the factor of China’s large-cap A-shares into the MSCI Emerging Markets Index from 15% to 20%, which will drive more incremental funds into the Chinese stock market, which is expected to boost investment. Confidence.
The long-term valuation of the primary and secondary markets is not normal.
The recently listed Chinese company, Xiaomi IPO’s valuation has fallen by half. Since the listing of UCI, the share price has been severely broken. As for Weilai, the stock price has fallen by nearly 80%. Even more bleak is the overseas WeWork, in order not to let the valuation appear “foot”, simply choose not to go public. For the phenomenon of new shares breaking, the guests of the summit put forward their own opinions on the inspection and correction of the secondary market in the secondary market and the future capital flow.
Sun Weiwei, deputy general manager of CICC Capital, believes that it is still necessary to support a good financial GP (in this case, an investment institution such as VC/PE). At present, the market is shrinking, the allocation of funds is relatively small, and institutional investors are more willing to adopt a defensive strategy. In addition, the total amount of financing in 2019 may be only half of that in 2018. Quality projects are difficult to find and may become more and more difficult to find. Therefore, the phenomenon of the investment agency Qianma Wanmao to grab the star project will happen frequently.
Liu Yuan believes that the primary market has been over-prosperous in the past few years, but the secondary market is smarter. Because the primary market is made up of angels, the GP will price through benchmarking, calculating revenue growth and user growth, and the startup team will calculate a sufficient amount to maintain the next round of financing.
The more times you get financing and comparison, the more bubbles you have in your valuation. In addition, both entrepreneurship and investment have pursued hot spots, further accelerating the expansion of the bubble. The secondary market is priced by the war-torn stockholders. The evaluation criteria are more rational, and the profitability is more important. It can squeeze out the bubble and return the valuation to the normal stock market cycle. It is not difficult to understand that the recent listing of new shares and sub-new shares continued to break.
Although the liquidity and information transparency of the two markets are different, the valuation system is very different, but there is still a strong linkage between the two markets. The long-term valuation of the primary and secondary markets is not normal.
At present, with the introduction of new asset management regulations and capital tightening, GP financing has declined, and the primary market transaction volume of RMB financing has been reduced. In this regard, the real fund Liu Yuan also raised his own question: “Does this mean that the first- and second-tier market inversions have been corrected and returned to the state of 10-16 years?”
EagleA giant, but in the case of expanding competition, it is not easy to survive.
On the other hand, in fact, the logic of the A round is similar to that of the angel. It is determined when the business model including the product has not been fully verified, and it is also determined in uncertainty.
Liu Yuan also raised another concern, that is, all investors like to advertise their hard-core technology and strong founders, but most companies do business model innovation or copy mode work, and Not an innovation in the underlying technology. For example, Didi is not strictly a technology-driven company. There is still a market for business model innovation, and Zhenge Fund will continue to pay attention to the field of technological innovation.
For the problem of technological innovation, Liu Xiaoying also put forward a similar point of view. Some scientists’ technological innovations have been stuck in the laboratory stage, and they continue to overcome research and development problems, but companies need cash flow to survive.
The laboratory model is not suitable for the business community, so the venture capital industry needs to find scientists who can transform into entrepreneurs, such as the founder team of Shangtang Technology. Although such a team has a long scientific research cycle, its latecomer advantage is very strong, and it is willing to make slow money, and can outperform most companies that like to copy.
In Canada, the theoretical research of basic subjects is more solid, and there are also high-quality teaching resources and research environment. The protection mechanism for technology patents is more robust, and there may be more similar opportunities.
In addition, Liu Yuan highlighted several issues in his speech session and suggestions for overseas Chinese entrepreneurs. First, startups need to adjust their thinking, identify opportunities for entrepreneurship, build teams, and make products before looking for funds; instead of thinking about opportunities, inferences, and products after finding funds.
Secondly, the return of the “sea return” to the country was once an advantage, but now some investors think it is a disadvantage. Because “sea return” is not familiar with the domestic environment, and when entrepreneurship becomes a major trend, the opportunity cost is lower, but the competition is also fierce. In addition, for those who want to enter the venture capital industry, Liu Yuan’s suggestion is to keep in touch with the domestic venture capital circle, try to work in a startup or technology company, or start investing and researching on listed technology companies, or read it. The research report ensures a basic understanding of an industry.