Chen Zhiwu: No Capital Market &Nbsp; Enterprises Should Be Raised By Their Sons Instead Of Being Sold Like Pigs.

In March 15th, the 2012 Forbes China potential investment forum was held in Beijing.

On the forum, Mr. Chen Zhiwu, chief financial adviser of Yale University, Professor of finance economics, made the first speech.

First, thank you very much.

Let me start with Ma Huateng's story as a starting point.

A few years ago, in 2009 and 2010, Forbes's list of China's richest men saw 50 billion yuan of personal wealth, the first of the high-tech rich list - Ma Huateng's fortune was in the position of about 50000000000 yuan.

In any case, in fact, it is very interesting from the perspective of our academic research. Today, Tencent has a market value of 400 billion in recent years, though it is only 15 years.

In 2004, when the Tencent just went public, the closing price at that time accumulated over 50 times in the past seven or eight years. This wealth story has brought us great thoughts.

In particular, the discussion on the income gap in China is also very intense. In fact, the discussion on the wealth gap is not only in China, but also in the United States and other developed countries.

In fact, let's think about it carefully. Why? From a biological standpoint or a wealth distribution perspective, not only in the US and the developed countries, but also in China, the gap is getting bigger and bigger. My article says that if you look at the eighteen China in ninth Century, the so-called richest people in China could enter the list of China's richest people.

Today's wealth of China enters Forbes's list of rich people, which needs to be calculated in billions.

Today, the gap between the rich and the poor is indeed very large. Compared with the eighteen China in ninth Century, it is indeed a very big change.

Think back to it. When there is no capital market and no stock market in China, we Chinese say who is rich is what he has not spent in the past and become rich.

In 2004, the profit of Tencent was 440 million. By 2011, it would be 8 billion 100 million yuan. If the annual profit of 14% over the past years has been calculated again, if the wealth is equal to the estimated income in the past, then the personal wealth of Ma Huateng is 2 billion 700 million yuan, so we see where the difference is.

For Ma Huateng, there is a capital market and no capital market, which is very different for his personal income.

What's the result? There are developed stock market societies, personal wealth, and the market value of the enterprise is the discount value of future income.

In other words, in front of us, in other articles, I also mentioned that after the capital market, the wealth of Chinese today is not only a continuation of the past income, but also the discount value of future income expectation.

The value of reinvestment depends on the discount value of expected revenue, because the capital market provides pricing and cash reallocation mechanism - conspiracy pricing.

Nor is it right now that Wall Street financiers, entrepreneurs are darker than before, and exploitation is longer than before. This is not the same thing at all. This is a fundamental change in the computer system of the financial capital market.

Today we can see that in fact, a fundamental change has taken place in the concept and connotation of Chinese enterprises and traditional Chinese enterprises.

Today's capital market has actually affected the economic situation.

If there is no capital market, enterprises should be raised as sons instead of selling like pigs.

Do I sell the enterprises like pigs? The premise is whether the capital market is active. The capital market I speak of is not only the stock market, the private equity, the M & a market, but also the angel investment is a complex multilevel and multi-level capital market.

Because of this, in past articles, "no business is not rich," and now it is "no equity is not rich".

The value of corporate equity is very different from that of products and services in terms of quantity.

Just now we talked about the wealth story of Tencent. Ma Huateng's wealth story seems very encouraging.

Like Qihoo, Tencent, Sina, and other companies, in the past these years have provided a lot of valuable strength, young people, middle-aged people want to go one by one themselves.