What is the difference between industrial investment and financial investment

The difference between industrial investment and financial investment is as follows:

(I) Industrial Investment

Industrial investment refers to a kind of investment mode of *** enjoying the benefits and *** sharing the risks by investing in the equity of an enterprise and providing operation and management services.

Currently, there are two main types of industrial investment in China:

One type is venture capital, which is nowadays attracting a lot of attention from the media, and the high-risk and high-return investment represented by venture capital firms;

The other type is the traditional industrial investment, which has been closely watched by industrial investment organizations, and which aims at less risky and stable-return investments such as infrastructure construction.

The other category is traditional industry investments that industrial investment organizations have been paying close attention to, targeting less risky investments with stable returns such as infrastructure construction.

For Chinese enterprises, especially small and medium-sized enterprises, industrial investment is more effective in promoting the cooperative relationship between investors and operators, and investors will pay more attention to the operation status quo and long-term interests of enterprises, and devote themselves to improving the governance structure of enterprises, so that the long-term development of enterprises can be guaranteed, which is even more important for the enterprises with weak management. The enterprise has a "help the horse, send a ride" role.

The jocular claim that China's industrial investment is lonely is based on the overall operational status of industrial investment. As the former type of venture capital is in the field of "high place is not cold", "two high" of the chase, market speculation, followers of the blind, the anxiety of the enterprise, will be the top of the venture capital up to the clouds, so that it is trembling with fear, lest accidentally fall down, bruises and swollen face, or fear for their lives; the latter type of traditional investment has a "know less, who listen to the broken string" of loneliness, because it has been trying to smooth, gentle in the The latter type of traditional investment is lonely with "few voices and few broken strings", because it has been trying to seek the steady growth of business and rapid accumulation of capital in a smooth and moderate manner, and its personality of not making a show of itself has made this type of industrial investment in a fairly long period of time in a neglected and ignored corner, and lack of strong support.

The process of China's marketization, the disposal of non-performing assets of China's financial industry, the last capital feast in the market front, industrial investment institutions, with in-depth study of certain industries, industries and keen sense of smell, participated in some of the non-performing assets disposal, due to the policy of opaque operation, information asymmetry and other reasons, so far there are not many examples of success. Therefore, industrial investment in non-performing assets disposal, like the wild lilies in the valley, only in a certain place to bloom their own spring.

The synonym of loneliness for industrial investment is aggressiveness. Positive industrial investment institutions to improve their core competitiveness at the same time, in order to avoid short-term "quick success" behavior, so that industrial investment is more sustainable, so as to increase efforts to segment the market demand for capital, picking almost harshly to choose investment targets.

In terms of investment choices, the primary target of industrial investment organizations is the enterprise, the leader of the enterprise, followed by other elements such as the industry.

There is no doubt that real industrial investment is far more interested in enterprises than projects, i.e., industrial investment is more about investing in enterprises. Industrial investment organizations make long-term strategic investments in companies with promising market prospects, standardized management, and financial transparency based on the business records of previous companies. Usually, industrial investors invest in market-oriented projects much more than technology-oriented projects, because industrial investors are more concerned about whether the company can quickly adopt new business models to ensure the company's continuous and rapid growth under the competitive state. The demanding nature of the business makes industrial investment even more "special" in the eyes of the public.

The direction of a company's development is determined by its leaders, so in the process of cooperating with a company, industrial investment organizations pay special attention to whether the company's leadership has a broad vision, a strong will and a broad mind. Industrial investment tends to focus on industries that are conducive to the development of its strengths, so that it can better provide value-added services to invested enterprises, while the quality of corporate leadership based on integrity determines whether the two sides are able to work together in good faith for the *** same goal, and to implement strategic planning, so as to protect the legitimate rights and interests of the industrial investment institutions to avoid the moral risks of the enterprise.

China's private entrepreneurs are tenacious and flexible, and in the operation of the market, they are more in pursuit of high efficiency and high returns, and industrial investment is more and more consciously aiming at this part of the population, expecting to find the best partners.

As mentioned earlier, industrial investment organizations have their own industry sectors they focus on, and their investment direction is also more inclined to industries that are conducive to the development of their own strengths. For those who are not involved in new industries, industrial investment organizations have their own judgment and criteria based on in-depth research.

For example, for venture capital, industrial investment is concerned about the growth rate higher than the GDP growth rate of the industry, can develop rapidly and have excessive profits, while the industry's domestic and foreign IPOs and mergers and acquisitions and reorganization of enterprises frequent business in the public stock market, the average price-earnings ratio is in a high position. High-tech driven by the rapid development of electronics, communications and networking industry is undoubtedly a representative of this era of industrial investment direction.

Then look at the traditional investment, industrial investment is to choose the scale of growth potential of the industry, such as energy, biological and public **** facilities construction, etc. for traditional investment, there is a sufficiently large potential market, which is the basis of the industry's development with a wide range of space, the ability to the market competition factors favorable combination of the industry will become the preferred choice.

No matter which type of industrial investment, including the disposal of non-performing assets, in the choice of industry, industrial investment organizations firmly believe that their choice is a perfect choice of overreaching rationality.

Industrial investment is different from bank loans, industrial investment is to provide equity investment for enterprises, which can quantify the investment projects and help enterprises to realize the optimization of equity and asset structure. Therefore, industrial investment institutions are required to participate in the management and assist enterprises in formulating medium- and long-term development strategies and marketing strategic planning, evaluating the time schedule of investment and business plans, the reasonableness of sales and financial forecasts, and a series of other programs. All this as, prompting industrial investors in the field of investment have to do "long-sleeved good dance", and this, for the disposal of non-performing assets is particularly important.

Industrial investment in different categories determines the nature of the investment returns are different: entrepreneurial investment returns are more short-term cash benefits, the pursuit of traditional investment is a long stream of long-term gains, and the disposal of non-performing assets to reap more of a sense of responsibility. Three kinds of investment income obtained, all from industrial investment for the contribution of the invested enterprise, industrial investment in obtaining social benefits at the same time to achieve economic benefits, making industrial investment in the lonely shrouded in a layer of sacred, dazzling aperture.

(B) financial investment

Financial investment refers to the purpose of obtaining short and medium-term financial value, mainly through the premium exit to achieve capital appreciation of the transaction behavior, including single equity investment and hybrid investment. Among them, hybrid investment refers to the transaction structure in addition to equity investment, but also includes the bond type of business transaction type.

Enterprise investment is in order to obtain future economic benefits and competitive advantage and put the funds raised into a certain business or business activities. The investment of funds is not only an important expression of the strategic intent of the enterprise, but also a bridge from planning to implementation of enterprise investment activities.

The goal of enterprise financial investment financial investment goal is that the enterprise in a particular investment environment, the organization of investment activities to achieve the goal. Enterprise financial investment objectives are diversified, not only to cover the enterprise's long-term and short-term strategic objectives, but also to focus on the sustainable development of the enterprise, summarized in the following important aspects:

Collapsing the profitability of the target

This refers to the enterprise investment is to achieve a certain amount of profit or income, usually measured in terms of profitability, return on investment and other indicators. Profit is the difference between all the income of the enterprise in a certain period of time minus the costs and expenses, in economic point of view, this difference is the people in a certain period of time business activities created by the value of the surplus product in the form of transformation, the more profit, indicating that the enterprise provides more surplus products. Profit is not only the source of social wealth, but also the enterprise to expand the scale of operation, capital preservation and value-added and improve the material basis of the staff's living and welfare treatment. Therefore, the primary goal of the enterprise to make investment is to create more value for the enterprise itself in order to realize more profits.

Folding growth objectives

This refers to the long-term strategic perspective to consider the growth and development of the enterprise, in order to achieve the goal of expanding the scale of production, increase production, improve sales and the level of technology and equipment. Modern enterprise development should focus on strategic planning, not only consider the current development, but also need to plan for sustainable development, to achieve the continuous development and growth of the enterprise. The scale of operation is a significant symbol of the growth and development of enterprises, the purpose of enterprise investment is not only to maximize current profits, but also to maximize long-term profits, so the growth target is an important goal of the enterprise investment strategy.

Folding market share objectives

This refers to the enterprise occupation of the market, increase market share objectives. A significant measure of business performance is the enterprise's market share in similar industries. Enterprises carry out production and business activities, through the operation of funds to occupy a place in the fierce market competition, market share is an important indicator of the level of development of enterprises. Occupy the market, expand market share can enhance the market competitiveness of enterprises, thereby improving the ability of enterprises to bear and cope with various risks.

Folding the goal of technological leadership

This refers to the enterprise to be able to occupy a leading position in a certain technology as the goal. Innovation is the inexhaustible power of the enterprise's lasting development, is a powerful weapon for the enterprise to win the competitive advantage. Technological leadership is an important intangible asset for the development of modern enterprises, which can bring excess profits, enhance the competitive strength of enterprises, but also the capital for the development and growth of enterprises.

Folding industrial transfer goals

This refers to the enterprise to change the direction of production, from one industry to another. Any investment activities have different degrees of risk, the diversification of investment is conducive to reducing the overall risk of the enterprise. At the same time, due to the existence of the industry life cycle, so that some investment in the sunset industry can no longer bring lasting profits for the enterprise, which requires enterprises to seek greater development potential of the industry in order to seek more profits.

Folding integration goals

This refers to the enterprise to obtain or establish guaranteed sales channels, key technologies, raw material supply base and energy supply goals. Modern enterprise production and operation shows a trend of diversification, involved in different industries, different areas of production and operation activities will certainly greatly increase the business risk of enterprises. In order to ensure the smooth progress of production and operation activities, enterprises need to improve the corresponding supporting measures. The use of integrated investment strategy refers to the enterprise through the implementation of the implementation of the control of the supply chain of each key link, from the source to eliminate the production and operation activities to interrupt a variety of unfavorable factors, so as to achieve the maximization of the overall value of the enterprise.

Folding social welfare goals

This refers to the enterprise to achieve social public **** benefits in terms of goals, such as environmental protection, public **** transportation, energy saving, etc.. As the main body of market activities, the enterprise's activities will have an impact on the lasting development of society. Therefore, enterprises not only need to consider their own development, but also from the height of the entire socio-economic development, committed to the realization of social welfare goals, to promote the sustainable development of the whole economy and society.