An analysis of the current situation of Chinas new materials industry investment and financing.
1. The new materials industry has become research investment focus, but focus on the development of new materials in different regions to significant "difference"
In the world, especially the developed countries attach great importance to the development of new materials industry, development of human history shows that the material is the material basis and guide social development, and the new material is a milestone of social progress. The development of new materials industry, not only for our current economic and social development has played an important supporting role, and will lead the strategic direction of Chinas future economic and social sustainable development. As of 2004, the ministry approved a total regional new materials industry base 37, which approved the establishment of 22 high-tech Division, approved the establishment of the National Torch Plan 15. In 2008, the National Development and Reform Commission approved seven new materials industry, the national high-tech industrial base. "863" Project results industrial base running body are mainly enterprises, identified a total of 84 companies since 2000, in which new materials enterprises 29. Currently, the CAS system and central-owned related materials over 100 research institutions, professional colleges set up materials accounted for 66% of colleges and universities, and included in the "211 Project" universities, set up a Materials Science and Engineering accounted for 88 per cent, materials engineering and technology research center in the field of 44, accounting for 30% of all domestic engineering and technology research center. Currently, more than 20 provinces have new material as a high-tech industrial development areas of focus, Beijing, Shanghai, Tianjin, Hunan, Jiangsu, Zhejiang, Guangdong, Shandong and other places strong industry momentum of development of new materials, new materials industry is gradually becoming significant increase political research investment priorities and regional economic pole, Chinas new materials industry, "difference" regional distribution system in space began taking shape.
New materials industry in the "differences" on the regional spatial distribution reflects the difference between the level of development of the area of new materials industry, whether it is between regions, or within an area, there is a significant gradient distribution of the new materials industry phenomenon . How in terms of natural resources, economic and social, ecological environment, from industry, markets, governments, regional features and other aspects, the new starting point to further deepen the study of new materials industry, investment and financing problems, will be of great practical significance. The author of the survey results to develop new materials industry in Ganzhou investments made show that at present, Ganzhou active use of resources and policy advantages, highlighting the increase of rare earth resources industry investment and financing efforts, has been formed from mining, dressing, smelting, was added to stop industrial applications financing structure. China Minmetals Corporation, Hong Kong Gimhae Environmental Protection Technology Co., Ltd. Zhejiang Hengdian East magnetic Corp., Hangzhou Daming Fluorescent materials company, Xiamen Tungsten Co., Ltd. and China Poly Group Corporation and a number of industry leading enterprises have invested in Ganzhou, a famous non-ferrous metals and new materials industry base is focused on creating being. According to reports, was established in October 2008 Minmetals RE (Ganzhou) Co., Ltd., the company registered capital reached 837 million yuan, the worlds top 500 enterprises - China Minmetals Group, Minmetals Nonferrous Metals Co., Ltd. main sponsor, the United Gan County Hongjin Rare Earth Co., Ltd. and South China set new materials Resources Ltd. jointly sponsored the establishment of the original shareholders, collection of rare earth mining, deep processing of rare earth rare earth separation and integration, Jiangxi Jinli Yong Magnetic Technology Co., Ltd. plans to invest 1 billion Yuan, divided into three companies will be fully put into production with an annual output of more than 6000 t-magnetic material, and the world will be the domestic industry with the largest single-plant companies, is expected to achieve an annual profit of 120 million yuan, 060 million yuan of tax, so that the Ganzhou become the largest production base of rare earth metals and the permanent magnetic material.
2. The venture capital institutions to accelerate the layout of strategic emerging industries, but in the field of new materials industry is still relatively "low key"
Premier Wen Jiabao entitled Nov. 4, 2009, published "Chinas sustainable development leading to technology" speech pointed out: "Chinas development of new strategic industries, have certain comparative advantages and broad space for development, can be As ", but also pointed out that" the development of new materials industry in China has become the worlds manufacturing power is critical, "" we must accelerate the field of microelectronics and optoelectronic materials and devices, new functional materials, high-performance structural materials, nano-materials and devices, etc. scientific and technological research, as soon as possible with the world advanced level of new materials and intelligent green manufacturing system, "Premier Wen Jiabaos important speech, so that we further recognize the importance of new materials in Chinas economic development, as well as the support of new materials the important role of emerging industries of Chinas modernization and the achievement of sustainable development.
For active in the forefront of the venture capital industry and private equity investment organization, its investment tentacles had extended to the low energy consumption of small, high-growth emerging industries of strategic positioning established venture capital and private equity investment institutions to invest is the wind unboiled water in the field from Zero2IPO Research Center data show that the number of cases in 2009 venture capital investment and private equity firms in the information industry, new energy industry, new materials industry, medicine / health care products, bio-engineering and other strategic emerging industries of 307, the amount of investment 1.88 billion dollars, while from 2009 the progress of each season in terms of investment, venture capital and private equity investment in the whole (VC / PE) mechanism layout in strategic emerging industries is accelerating, especially in the third quarter of 2009, Premier Wen Jiabao After held three strategic emerging industry development forum, it took place in the fourth quarter from 105 strategic industrial investment, involving an amount of $ 699 million, accounting for 2009 with a total investment of 34.2% and 37.2% cases of total investment, the investment case over the third an increase of 21 from the quarter, investment grew by 85.6 percent.
It is clear Research Center study shows that due to the different investment preferences, and affected the launch mechanism, and foreign investment institutions investing in emerging industries of strategic layout features differ, on the whole, in 2009 the number of local venture capital and private equity and the amount of all over foreign venture capital and private equity investment institutions in which the former investment amounted to 185 cases, accounting for 60% of the overall proportion of the amount of investment 963 million US dollars, accounting for the overall share of 51.3%, which is the investment case 114, and the overall 37.1% of the proportion of the amount of investment $ 888 million, accounting for the overall proportion of 47.3, in several strategic emerging industries, new energy is undoubtedly affected by the highest degree of concern, but also the first one of the venture capital industry involvement, statistics show 2009 New Energy and Industrial total of venture capital and private equity investment institutions to invest 448 million US dollars, the investment case 28, in which the investment activities of the most active in the field of solar energy, the investment case 13, the investment of $ 238 million, the wind energy sector investment case 9 an investment of $ 176 million. Among them, in 2009 the number of local institutions to invest in new energy field of 19, accounting for 67.9%, the amount of investment $ 246 million, accounting for 54.9%, the number of foreign institutional investors for the eight cases, accounting for 28.6% the amount of investment 195 million US dollars, accounting for 43.5%.
However, in the field of new materials industry, currently the number and amount of VCs are less, reflects the current is still relatively "low key", investment valuation levels are relatively low in this area to some extent, as the strategic emerging industries gradually put in place policies, the industrys future development will surely be worth the venture capital and private equity concerns and tap into
II. Chinas new materials industry, investment and financing opportunities and challenges
Speed up the current process of economic globalization and the rapid development of Chinas society and economy, investment and financing of new material industry and put forward higher requirements for the update, and usher in a new development opportunity. At the same time, to achieve sustainable development of new materials industry, the current investment and financing of Chinas new materials industry is also facing new challenges.
1. Major Opportunities
(1) In support of the emerging new materials industry will enter a new stage of development
New materials industry, including electronic information materials, new energy materials, aerospace materials, new building materials more than a dozen categories and numerous subcategories, new materials industry and scale has become the measure of a countrys economic construction, scientific and technological progress and national defense strength an important symbol. New materials technology is a modern high-tech, new materials industry is a modern high-tech industries. Development of new materials, including: the use of new concepts and new molding process and manufacturing technology to create new materials with high performance or special features of traditional materials redevelopment to obtain significant performance improvements and enhanced. Therefore, the new materials industry, including those outside the industry, new materials handling products form itself, but also includes ancillary equipment and new materials processing and manufacturing industries, traditional materials technology to upgrade the industry, quality assurance and certification schemes and other service industries.
On local terms, in order to support emerging new materials industry has entered a new stage of comprehensive planning and accelerate the development of, for example, Shandong new energy, new information, new materials, new medicines as a development priority, Hunan Province, is to cultivate development of advanced equipment manufacturing, new energy, new materials, bio-medicine, electronic information, aerospace and other strategic emerging industries, Hubei choose to accelerate the development of electronic information, biological medicine, environmental protection, new energy, new materials, aerospace and other strategic industry; Fujian will focus on accelerating the optoelectronic materials, new energy materials, polymer materials, rare earth materials, catalytic and photocatalytic materials, special metal and ceramic materials, such as industry, bigger and stronger new textile fabrics, new building materials, chemical materials and other industries; Jiangxi Province is a clear strategic ten photovoltaic, wind energy, nuclear power, new energy vehicles and motive power batteries, aviation, semiconductor lighting, metal and new materials, non-metallic materials, biotechnology, green, cultural and creative emerging industry. "Decision of the State Council on accelerating the development of strategic emerging industries" ongoing investigation on behalf of the draft, and strive to June 2010 prior to submission of the State Council, and "At present, the National Development and Reform Commission and the Ministry of Finance and other departments to draft strategic development of new industries twelve Five-Year Plan "is also being prepared which is expected to launch in September 2010, not only that, the countrys 31 provinces, municipalities and autonomous regions have accelerated research and deployment of strategic emerging industries to develop in accordance with national policies of taxation, finance, financing, etc. The implementation details.
With the gradual introduction of national and local governments of the various planning rules and policies, to new materials to support strategic emerging industry will usher in rapid development, investment and financing of new materials will also enter a new stage of development.
New materials industry, investment and financing for innovation (2) "second five" broad and has great flexibility
Currently, the new global materials market has more than 400 billion US dollars, which led to produce new products and new technology markets are much larger, according to the development trend of Chinas current economic forecasts, new materials demand will reach 10% annual growth rate, 2010 Chinas new materials market size of up to 650 billion yuan. Currently in the field of new materials, there are about 10 percent have reached the international leading 60% -70% in catch-up state, and 20% -30% there is a considerable gap between the investment and financing for innovation of new materials in the field of wide, its investment and financing channels and investment and financing also has tremendous flexibility.
In the "five" period, China will focus on new materials development priorities for national economic development plays a key role in the general direction of expansion 5: First modern transportation, such as lightweight automotive, high-speed rail, ocean vessel; two is the efficient and clean energy, semiconductor lighting (LED), wind power, solar energy and other energy storage systems, thermonuclear fusion; Third, environmental resources, such as magnesium, rare earths and other strategic resources-rich characteristics of materials, clean coal chemical industry,; straw material synthesis utilization; Fourth livelihood industry, such as small towns and urbanization required green building materials, involving cultural entertainment and media medium such as a new generation of advanced display materials associated with the population security of biomedical materials and medical equipment, etc; Fifth, the defense sector, our country only through the implementation of the diversification of investment and financing, investment and financing, investment and financing channels and so flexible measures to speed up the microelectronic and optoelectronic materials and devices, new functional materials, high-performance structural materials, nanotechnology and investment and financing innovation in areas such as materials, in order to promote scientific and technological research for the field of new materials, new materials as soon as possible and intelligent green manufacturing system with the worlds advanced level of the provision of financial services. Therefore, the development of new materials industry brought our country will be a sharp increase in investment and financing opportunities, "second five".
2. The main challenge
(1) new industrial materials industry in high barriers to entry and the investment risk
Entry barriers is an important factor in determining market structure is the fundamental condition of imperfect competition, industrial organization theory has been the focus of attention, according to the modern theory of industrial organization, the monarch as barriers generally constitute factors: economies of scale barriers, product differentiation barriers Relative cost barriers and administrative regulatory barriers. Barriers to entry exist, it is considered an important reason for the differences between different industries profit margin. Industry barriers to entry means that the product enters when the industry suffered obstacles and resistance, if Conceptually, new materials refer to new or already in development, with traditional materials do not have the high performance and special features The material is a relative, dynamic concept. Since the vast majority of new materials are developed from the basis of traditional materials, the traditional material on the performance or functionality continue increasing, so the new material industry from the outset with high industry barriers to entry.
New materials industry as a strategic emerging industries, the huge market demand and profit margins to lure potential entrants have entered. Compared to other mature industry, new materials industry, there preliminary research and capital investment in the trial of a larger amount, more uncertainty in the market, production processes and techniques variability, production technology integration ability, less large enterprises, Small enterprises with insufficient self-development capacity and other issues, entry barriers specific performance of financial barriers and technical barriers. Further, as a riskier business, investment in new materials industries also tend to invest with the nature of the risks, companies must fully analyze and grasp these risks, such as technical risk, market risk and financial risk. The risk characteristics of the new materials industry, the decision process of the new materials industry will face more severe financial constraints, particularly in the initial stage of industrialization, which is often particularly severe funding constraints. As Chinas venture capital mechanism is not perfect, new material technology mainly rely on government finance and part of a citys business investment to achieve industrialization, so that there are a large number of scientific research and industrialization of impulsive funds, unable to break out of funds, can not be found The introduction of safe passage, hinders the process of industrialization.
Although new materials has become a hot market, but there are policies, there is a market does not mean that businesses will be able to earn high profits. Therefore, to do the analysis of industrial entry barriers, the development of new materials industry seriously question the investment risk, but also Chinas new materials industry is facing an important investment and financing decisions tune war.
(2) New Materials Industry Investment constitution must further deepen reform
Investment and financing model is available for use when emulate and repeat for certain investment projects having a common feature of investment financing program. New materials industry investment and financing model includes three basic elements: the new materials industry, investment and financing, new materials industry investment and financing channels and new materials industry investment and financing.
Chinas new materials industry Although there has been some progress, but always on a small scale, small scale, the natural growth trend in the development, investment and financing projects and new materials industry is relatively simple, especially the lack of financing in the international capital markets capabilities. In the field of Chinas new materials industry, it has long been implementing a government approval, government investment, investment and financing mode bank loans, investment and financing model of a single, lack of financing channels more effective. Currently the main way of new materials enterprises access to capital is still self-financing and bank loans, financing structure and debt structure is irrational, it is difficult to meet the needs of sustainable development of the new materials industry. In addition, the degree of market new materials industry is not high, industry segmentation, fragmentation, dispersion and other management problems persist, demand for new materials industry project investment risk, bank loans for these projects very carefully.
Since the investment is too small, lack of adequate research and development, many of the key equipment to be imported, leading to the slow development of new materials industry; low-tech industrialization, commercialization level, reach economies of scale, thereby constraining the new materials industry rapid development. Initiative to learn from foreign experience, select the appropriate model, and the new materials industry investment and financing system dominated by the government to rely on market-based instruments to guide change, is the solution to the future development of new materials industry funding bottlenecks, improve the efficiency of investment and financing of the inevitable choice.
III. Conclusion
Accelerate the development of strategic emerging industries, the CPC Central Committee, the State Council, the situation and gain a foothold in the international financial crisis to seize the important strategic decisions in international economic and technological high ground, gain new advantages to the future, is to accelerate the transformation of economic development imperative.
Strategic industry, usually refers to the national economic development plays an important role, to reflect the strategic intention of the State, for the national economy has an important influence on the economy can support current and future economic growth, to represent the future direction of the economy and industrial technology direction. But such strategic industries often need reliable backed by huge amounts of money. At present, Chinas limited capital reserve, personnel preparation and other elements that could be mobilized, it is impossible at the same time as the development of other developed economies like the United States in a number of areas, but at least you can selectively limited the development of new materials as the support of key strategic industries. Therefore, the establishment of an effective multi-channel investment and financing system, fully mobilize the type of money into new materials to support national strategies industries, forming a virtuous circle national strategic industry investment, China is fostering new materials and other strategic emerging industries a necessary condition, but also accelerate the development of strategic new industries and new materials must be crossed the ridge.
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