The story appears on

Page B8

August 28, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Finance

PE funds head to city on incentives

SHANGHAI'S first wholly overseas-owned private equity firm was established in Huangpu District this month as the district beefs up its financial industry strength.

The PE fund management company was set up by Hong Kong-listed VXL Capital with a registered capital of US$25 million, said an unnamed official with the district's financial services office. The PE firm is pooling together capital worth 5 billion yuan (US$732 million) to target the tourism and energy sectors in China.

"Almost every week, I meet with people from private equity firms as the industry is booming," the official told Shanghai Daily yesterday.

The district offers a one-time subsidy for PE firms, an annual supporting fund and tax subsidy to lure more of them to set up base there. To attract more top-class financial professionals, the district is offering more than 80 apartments to them.

The Private Equity Association of Shanghai, comprising 13 PE member firms, was also set up yesterday in the city to boost development of the industry.

"The private equity firms are on a fast track," said Jeffrey Shi, chairman of Comway Capital Group, a member of the association, yesterday. "The association is expected to boost exchanges among the industry players."

China's fledging private equity segment is growing rapidly and the authorities are encouraging the development of the sector, Su Ning, deputy governor of the People's Bank of China, said last week.

The National Development and Reform Commission, China's top planning body, has submitted a draft of rules governing local-currency PE funds to the State Council. Several yuan-backed PE funds have been set up in China, mostly on a trial basis.

Shanghai is playing catch-up with Tianjin, Beijing and Hong Kong to become a PE center by proposing tax breaks to attract buyout firms.

Earlier this month, Blackstone Group said it has agreed to set up a 5 billion yuan PE fund with the Pudong New Area government.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend