Bank-related institutions keen on RMB private equity funds market
09/11/2009 source: People’s Daily
CCB International (Holdings) Ltd., a wholly-owned subsidiary of China Construction Bank (CCB) said on September 10 that it was planning to set up CCBI Healthcare Fund, its first private equity fund of RMB. It will raise no more than 2.6 billion yuan and invest in an unlisted domestic health enterprise. China’s pending Growth Enterprise Board (GEB) has aroused bank-related institutions’ enthusiasm in RMB private equity funds.
Prior to this, BOC Suisse Fund Management, Bank of China’s asset-management arm based in Geneva, said on September 4 that it had received approval from the Swiss financial regulator to create a new set of funds, part of which would be settled with RMB yuan.
In August, US’ Blackstone Group signed a financial cooperation memorandum with the government of Pudong District in Shanghai. Blackstone will set up the first regional private equity fund of RMB in Pudong – Blackstone Chinese development and investment fund. It will raise about 5 billion yuan in key investment areas including Pudong and surrounding areas in Shanghai.
According to a report released by China’s Zero2IPO Group, in 2008, RMB funds in China raised a total of 23.7 billion USD.
According a CCB staff, CCB International (Holdings) has been actively making preparations for the CCBI Healthcare Fund since last year. China’s National Development and Reform Commission (NDRC) approved the fund in April 2009.
BOC’s new set of funds will make it possible for China’s domestic private and institutional investors to invest in world financial market without currency risks. Foreign investors can add China and RMB-related financial products to their asset allocation via BOC’s new funds.
Fang Ming, senior analyst of BOC’s Financial Market Department, said that the two bank-related institutions recent action marked the new approach of the internationalization of RMB.
