Wall Street Chinese branch enterprises financing will be tight

NetEase technology news January 4th, according to the Wall Street journal website reported that in 2015, investors invested billions of dollars to China’s homegrown technology companies, has been a huge return. However, in the new year, not bad money Chinese enterprises may not be the scenery, the next year’s financing environment is not optimistic.

many Chinese unlisted start-ups bring returns for investors, valuations more than doubled in 2015, a series of MBO transactions also encouraged Chinese companies listed in the U.S. investors. Market research firm CB Insights and Dealogic data show that in 2015 there are more than 60 billion U.S. dollars of new capital into Chinese start-ups and private trading, compared to the figure in 2014 was only $13 billion 900 million.

up valuation

in this year, investors raised their holdings of shares in Chinese Listed Companies Valuation, although they cut on the investment valuation of Silicon Valley companies. Most investors do not need to publicly disclose their valuation of the shares held by start-ups, which are usually based on the latest round of financing. Fidelity Blue Chip Growth Fund mutual fund in January 2015 of the U.S. mission network (Meituan.com) for investment, although the company lowered its investment on the part of Silicon Valley valuation, but at the end of November the investment of no group’s valuation has increased more than 20% compared to January, the shopping application valuation has reached $15 billion. Chinese car service company drops fast (Didi Kuaidi Joint Co.) value increased by nearly two times, increased to $16 billion from $6 billion in February last year.

is more and more high valuations and many start-ups that some investors with money to burn. In recent months, as the country’s domestic stock market volatility led to the suspension of IPO, some investors to invest heavily in new start-ups cautious attitude.

All Star Investment Fund (All-Stars Investment Ltd.) founder Ji Weidong (Richard Ji), said: open market volatility has spread to the late venture capital market. Overall, the high valuation of the situation has eased, companies began to provide investors with better conditions." All star investment fund to invest in China’s start-up companies, including the valuation of $46 billion in Corp. (Xiaomi) smartphone manufacturers, as well as drops fast.

consider merging

investors and bankers pointed out that tight financing environment prompted entrepreneurs to tighten spending, and consider merging with competitors.

China Renaiss> (independent investment bank Renaissance

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