CIC’s Xie Says China’s Private Equity to Take ‘Different Path’
China’s private equity industry is “unique” because it’s dominated by the state and will follow a “different path” from overseas peers, said Xie Ping, a vice president at the nation’s $300 billion sovereign wealth fund.
Entities that manage private equity in China and those that invest in such funds are primarily state-owned institutions, China Investment Corp.’s Xie said today at an event held by China Development Bank Corp. in Beijing. The briefing was organized by the nation’s largest policy bank for its introduction of a fund that will invest in private equity.
By having government backing, China’s private equity funds can increase the value of Chinese companies in which they invest, Xie said. This is an aspect of the Chinese market that is different from other countries, he said.
The ability to invest directly in private equity is currently limited to a few large state-owned institutions such as China’s national pension fund. CDB Capital, the direct investment arm of China Development Bank, announced today it was partnering with Suzhou Venture Group to set up a fund of funds.
Central Huijin Investment Co., the investment arm of China Investment Corp. that holds the government’s stake in the nation’s banks, is a shareholder in China Development Bank. Suzhou Venture Group is backed by the government of the city Suzhou in eastern China’s Jiangsu province.
--Eva Woo. With assistance from Michael Forsythe in Beijing. Editors: John Liu
To contact Bloomberg News staff on this story: Eva Woo in Beijing at +86-10-6649-7537 or Ewoo9@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net
Rate this Page