The China Securities Regulatory Commission calls off cross-border fixed increase in VC companies. Some people applaud and some are worried

On May 11, Caixin. com posted a message saying that "the China Securities Regulatory Commission has suspended cross-border fixed growth of listed companies, involving four industries: Internet finance, games, film and television, and VR." A stone stirred up thousands of waves, and this topic still attracted retweets and discussions among VC people. At present, there are probably two views in the industry. One is that this is good news, and the other is that the CSRC's move is bucking the trend and hindering the development of emerging industries.

Original title: China Securities Regulatory Commission stops cross-border fixed increase? VC boss responded: What nonsense!

On May 11, Caixin. com posted a message saying that "the China Securities Regulatory Commission has suspended cross-border fixed growth of listed companies, involving four industries: Internet finance, games, film and television, and VR." Although there was news in the afternoon that the fixed-added projects for games and films had not been completely suspended, a stone stirred up thousands of waves, and the topic still attracted retweets and discussions among VC people. At present, there are probably two views in the industry. One is that this is good news, which will help reduce bubbles and promote the health of the industry. Second, it believes that the CSRC's move is against the trend and hinders the development of emerging industries.

The following are the views of several people in the VC circle:

Viewpoint 1: Good, conducive to reducing the bubble

Softbank China partner Song Anlan:

Good! For example, the story of XX Fireworks changing its name to XX Finance and allowing the daily limit to rise is not normal!

Zhang Ying, Founding Managing Partner of Jingwei China:

News about the CSRC's suspension of cross-border fixed increase. There are many people who are crying for injustice. My own opinion is that this move will actually reduce the bubble. No matter whether the market is good or bad, capable founders can always raise funds. Adversity will only make the surviving company more valuable.

Fu Zhekuan, Chairman of Qifu Capital:

It will have a greater impact on the concept of secondary market speculation. In addition, the impact of backdoor listings in these industries will also be greater, such as the return of Chinese stocks. Of course, in China's affairs, there have always been policies at the top and countermeasures at the bottom, and the results are still unknown.

Xu Chen, partner of Gobi Venture Capital:

Actually, it is good. Otherwise, the prices of some industries will be too outrageous. Once listed companies enter the industry, the premium will increase. Moreover, the competitive landscape will have an unhealthy tilt and reduce a lot of noise. However, at the same time, there will be fewer offers.

Jiuxuan Capital Liu Yizhou:

In the first half of this year, several investments in the VR field were made by listed companies, but VC was very cautious. After the new regulations of the China Securities Regulatory Commission, VR projects that do not have long-term profit logic and rely on fixed investment (market value management) by listed companies must pay more attention to investment logic. VCs are not so easy to fool.

Viewpoint 2: One size fits all is not a good way

. Anonymous VC A:

It is not appropriate to do so. Various concepts will have supporters and opponents in different VC, such as VR/live broadcast, etc., and there are optimistic and down-watchers. The primary market allows VC investors to decide whether to invest. Can the secondary market refer to it? Cross-border M & A integration is a spontaneous act of the market, and it is not a good method to block it completely.

In addition, is VR an industry or a virtual economy? There are many people who hold different views. VC is looking at the explosive power in the next five to ten years. VR technology includes the top IC, algorithm, sound, and image processing technology. How can it be simply classified into the virtual economy? Whether e-commerce is a virtual economy, whether it is encouraged or opposed, how to judge?

Anonymous VC person B:

It is normal for there to be a large number of speculators in the capital market, and even for many people to exploit loopholes in violation of laws and disciplines. However, our regulators always forget what their responsibilities are and are always unable to position themselves in terms of thoughts and actions. Position: formulating rules, maintaining order, and cracking down on violators in accordance with the law, but always directly inserting a tangible hand into the market in a rough way. This kind of practice is like stirring shit. It will only break and distort the good market and industry development laws, and create batches of deformed industries and distorted unspoken rules.

The final investigation result of the case of the Ministry of Commerce, the National Development and Reform Commission, and the State Administration of Foreign Exchange 7-8 years ago was that the various regulations, laws, and provisions that restrict foreign investment in China Internet companies under the banner of safeguarding national interests were just rent-seeking tools used by those who formulated laws and regulations. The result of these evildoers of laws and regulations was that the best domestic companies were forced to leave Maicheng, accepted foreign investment and listed on foreign securities markets. Looking back at home? It is still a paradise for violators and manipulators, who often have countless connections with domestic regulatory authorities. Can't you see what the relationship is? You can say that many listed companies sell dog meat, so why don't you directly rectify it? Let him delist? Waste his shell resources? What is the use of stopping the development of emerging industries and going against the investment trend? Can you, can you get it? What a damn bullshit!

Wang Ran, CEO of Yikai Capital:

1. Dividing the economy into the real economy and the virtual economy, and dividing the industry into the real industry and the virtual industry is a division that lags behind the times and uses the past to judge the present. Today's real economy and virtual economy have become increasingly integrated, and consumers are also investing more and more attention, time and disposable income in the mixed economy of "you have me, and you have me".

2. Although "cement companies doing film and television" does not conform to the laws of the industry and may not form strong core competitiveness in the long run, a company's choice of which industry to enter through mergers and acquisitions should be the choice of the company's management, board of directors and shareholders 'meeting., restricting A-share companies from cross-industry mergers and acquisitions of four types of culture-related enterprises is a departure from the spirit of the market.

3. Similarly, after the privatization and dismantling of the VIE structure, China will become 100% domestic companies and should enjoy the national treatment of domestic companies. Whether they can be listed, how and at what price should be a choice for companies and markets. If you want to curb the hype of shell prices, the really effective way is to open up channels for backdoor companies to list independently through IPOs, rather than artificially restricting the industry attributes and prices of backdoor transactions.

4. The reason why there are so many A-shares companies in sunset industries, lack core competitiveness, and are in urgent need of rebirth through backdoor nirvana is precisely the legacy of the approval system that has been implemented for many years. To break the bell, we still need to tie the bell. The top priority now is to break the bell by encouraging future-oriented asset restructuring and forced delisting, rather than using new restrictions-whether for the return of China and A-share companies-to tie the already dilapidated bells tighter. Allowing emerging industries and emerging companies that can lead the future and promote economic growth to occupy a larger share of the A stock market value is in line with the needs of China's economic engine to transform and upgrade, and is also in line with the long-term interests of the A-share market and A-share investors.

5. From the perspective of protecting A-share investors, there are two most fundamental points: First, strengthen information disclosure and severely punish insider trading. Second, increase the company's supply. Approaches in other directions will only make up the bigger the hole, the deeper the hole, and the deeper the situation becomes, the more confused it becomes.

Editor: vian