CreditEase chief calls for patience in equity investment
- By Chen Boyuan
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E-mail China.org.cn, October 31, 2016
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Tang Ning, founder and CEO of CreditEase, delivers a keynote speech at the Summit of Private Equity Investment, Global Asset Allocation 2016, held in Beijing on Oct. 29, 2016. [Photo by Chen Boyuan / China.org.cn] |
On Saturday, at the Summit of Private Equity Investment - Global Asset Allocation 2016, Tang said that private equity investment is most suited for people with high net assets as opposed to those with a high debt ratio.
"To engage in the new economy, and to invest in the new economy, one should build direct links with entrepreneurs of high-growth sectors. Private equity investment is such a way," said Tang. He cautioned at the same time that one must have patience in relation to long-term returns.
Private equity investment has three features: a high return rate, a long return period and high-risk, according to Tang. Due to the latter two factors, investors tend to get impatient and fall victim of mediocre investment opportunities.
"We notice that there are private equity products with durations between one to three years. They promise repurchases at 10-12 percent of the cost for failure to get listed. I'm telling you this is entirely impossible," Tang warned investors who seek quick and easy returns, adding that ten-year is a more rational investment cycle.
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