The international PE industry has experienced four important development periods.
1946 ~ 198 1 in the early PE period, some small private assets invested and small enterprises contacted private placement, which made PE start.
The first round of economic depression and prosperity from 1982 to 1993 made PE develop into the second period, which was characterized by a large wave of acquisitions with junk bonds as capital leverage, and reached its climax in the late 1980s and early 1990s, when it was still frantically acquiring RJR· Beske, a famous American food and tobacco company, under the almost collapsed leveraged buyout industry environment.
PE was washed in the second economic cycle (1992 ~ 2002) and experienced the third evolution period. At the beginning of this period, in the early 1990s, a series of financial and economic phenomena appeared, such as savings and loan crisis, insider trading scandal and real estate crisis. During this period, more institutionalized private equity investment enterprises appeared, and reached the development climax during the Internet bubble period from 65438 to 0999 to 2000.
From 2003 to 2007, it became the fourth important period of PE development. The global economy has gradually weakened from the previous internet bubble, and leveraged buyouts have reached an unprecedented scale, thus making the institutionalization of private equity enterprises unprecedented. We can fully prove it from the IPO of Blackstone Group in 2007.
After more than 50 years of development, international private equity investment funds have become an important financing means after bank loans and IPO. International private equity investment funds have large scale, wide investment fields, wide sources of funds and diverse participating institutions. Private equity investment funds in western countries have accounted for 4% ~ 5% of their GDP. So far, there are thousands of private equity investment companies in the world, among which Blackstone, KKR, Carlyle, Bain, Apollo, Texas Pacific, Goldman Sachs, Merrill Lynch and other institutions are outstanding. The development track of equity investment funds in China can be roughly divided into three stages, each of which has its own unique market background and characteristics.
First, in the early stage of industry development, a new investment concept was formed.
During the period of 1999, the International Finance Corporation (IFC) invested in Shanghai Bank, which indicated that the private equity investment mode began to enter China, which was a very new investment concept in China at that time. The first batch of foreign investment funds were mainly established, and the investment style was mainly venture capital (VC). Influenced by the vigorous development of global IT industry at that time, foreign capital recognized the development of IT industry in China, and the investment projects were mainly concentrated in IT industry. However, due to the Internet crisis since 200 1, people began to re-examine the overheated development of the IT industry, and domestic IT venture capital was hit hard. Most of the equity investment funds that first entered China did not survive.
Accordingly, at that time, China's stock market was not perfect, the sponsors' shares could not be circulated, and there were obstacles in the investment exit channel, which all became the factors restricting the development of equity investment funds at this stage. After Shang Fulin became the chairman of China Securities Regulatory Commission in 2002, the share-trading reform of listed companies in China began in 2004. This is one of the most far-reaching reform measures since the establishment of China stock market, which has provided a guarantee for the long-term healthy development of the market. It was not until June 9, 2006 that the "G" stock symbol officially bid farewell to the Shanghai and Shenzhen stock markets that the stock market really entered the era of "full circulation" and began to get on the right track. The landmark event of ending this stage-the reform of non-tradable shares, entered the era of full circulation.
Second, the rapid development of the industry, the rapid development of domestic equity funds.
Since the reform of A-share split structure, China's equity investment funds have entered a stage of rapid development. At this stage, the main features are as follows:
First, the share-trading reform of listed companies has been basically completed. The standardization of China's stock market and the high valuation of the secondary market make A-shares a popular listing platform for domestic companies, and the exit channels of equity investment funds are smooth, while domestic equity investment funds have local advantages in listing A-shares, which makes domestic equity investment funds develop rapidly. Second, the expectation of RMB appreciation is strong.
After 2006, China's foreign exchange reserves have been rising, and the expectation of RMB appreciation in the international market is getting stronger and stronger. The State Administration of Foreign Exchange has imposed restrictions on foreign currency exchange. After overseas financing, overseas listed companies have the risk of currency depreciation, and the development of overseas funds is restricted. The third is the policy restrictions on foreign investment. Both the government and the market have concerns about preventing the excellent national brands created by China in the past 30 years of reform and opening up from being controlled by foreign capital. In August, 2006, led by the Ministry of Commerce, six ministries and commissions jointly issued document 10, "Provisions on the Merger and Acquisition of Domestic Enterprises by Foreign Investors", the core idea of which is to restrict the overseas listing of domestic enterprises, which is a blow to foreign equity investment funds and the development of foreign funds has been seriously hindered since then.
In these short three years, the domestic monetary policy is relatively loose, and the development of foreign funds is restrained, which makes room and opportunities for the rapid development of domestic equity investment funds. It is the spring of the development of domestic equity investment funds, and a large number of RMB equity investment funds have appeared and achieved rapid development, with a rapid increase in the number of institutions and a gradual expansion of the fund scale. At present, the overall stock price of the market is 6- 10 times the price-earnings ratio, which is slightly higher than the international level.
Third, the industry is overheated or even crazy.
Since the second half of 2009, the primary market has continued to be hot, and the overall market price is above 10 times P/E ratio, and even there are projects with 20 times P/E ratio, which is very rare in foreign countries. It can be seen that the market is crazy and far from market rationality. The unreasonable development phenomenon at this stage is mainly caused by the following reasons:
First, the correlation effect of the secondary market. As the downstream of equity investment fund, the issuance of secondary market directly affects the price of primary market. In the second half of 2009, as the financial turmoil gradually subsided, the China stock market also began to recover. Although the overall level of the market is not high, the IPO market is attractive and accelerates the irrational development of the primary market.
Second, loose monetary policy. In order to tide over the financial crisis, the state has launched and gradually implemented a 4 trillion investment plan. The central bank lowered the deposit and loan interest rates and reserve ratio several times. There is too much money in the market, and the loan environment of enterprises is very relaxed. A large amount of industrial capital is not invested in the industry, but in the stock market and equity investment market, which not only raises the price of the stock market, but also pushes up the equity investment market.
Third, the two major policies of the CSRC were introduced. The reform of stock issuance system and the launch of Growth Enterprise Market have promoted the process of marketization. Both of them are necessary in isolation, but at the same time, the launch has brought too much fluctuation to the market. In the stage of implementing the policy of listing window to guide the issue price, 30 times PE is a red line that listed companies can't cross, and excellent enterprises can only raise funds at 28 or 29 times P/E ratio. The concept of growth enterprise market was put forward as early as 2000, and it finally became a reality after a long wait of ten years. These two are like springs. Suddenly released after years of repression, the market will rebound in retaliation. When they are released together, the superposition effect makes the rebound bigger.
20 10 Among the enterprises listed on the Growth Enterprise Market, there are more than 10 companies whose P/E ratio exceeds10. Simply put, this is equivalent to the investment needs 100 years to recover, which is rare in developed markets. The popularity of the secondary market has ignited the desire to make money in the primary market and raised the price of the equity investment market.
At this stage, almost every week, new RMB equity investment funds are established, the number of domestic equity investment funds increases rapidly, and the fund scale continues to expand. The money-making effect in the market makes local governments and state-owned enterprises participate in it, and many industrial funds have been established. However, due to the continuous appreciation of RMB, the policy of restricting overseas listing of enterprises has not been loosened, and foreign capital has continued to slump and sink in the China market.