City scores with fund setup
By Zhang Fengming |
August 5, 2009, Wednesday
|
Print Edition
Print Edition
CHINA'S first financial industry fund was launched in Shanghai yesterday as part of a move by the city to transform itself into a global financial hub.
The fund, whose total value is expected to top 20 billion yuan (US$2.93 billion), will be operated by GP Capital Co Ltd which was launched yesterday by Shanghai International Group, the investment arm of the Shanghai government, and China International Capital Corp, one of the country's most prominent investment banks. The two parties own 50 percent each of GP Capital which will raise the first 8 billion yuan of the fund's capital.
GP Capital was set up with a registered capital of 200 million yuan in Pudong New Area.
"GP Capital will operate according to international practice in building a first-class investment team," said Wan Jianhua, deputy chairman and president of Shanghai International Group, who is also chairman of GP Capital.
Bei Duoguang, managing director of China International Capital, and also president of GP Capital, said yesterday in Shanghai that GP Capital targets nationwide financial institutions as investment opportunities, including insurers, banks, fund management companies, brokerages and trust firms.
Bei also said he didn't rule out the possibility of including China's social security fund as a future partner although no discussion has been carried out so far.
Shanghai is pulling out all the stops to attract more private equity or venture capital firms to the city.
Fang Xinghai, director of the Shanghai Financial Services Office, has urged more support from the central government for private equity fund management companies registered in Pudong to get preferential policies to nurture the market in the city.
The Pudong New Area in June issued a rule to attract overseas private equity companies. So far, four overseas institutions have applied to set up in the area. The State Council has allowed 10 private equity funds.
The fund, whose total value is expected to top 20 billion yuan (US$2.93 billion), will be operated by GP Capital Co Ltd which was launched yesterday by Shanghai International Group, the investment arm of the Shanghai government, and China International Capital Corp, one of the country's most prominent investment banks. The two parties own 50 percent each of GP Capital which will raise the first 8 billion yuan of the fund's capital.
GP Capital was set up with a registered capital of 200 million yuan in Pudong New Area.
"GP Capital will operate according to international practice in building a first-class investment team," said Wan Jianhua, deputy chairman and president of Shanghai International Group, who is also chairman of GP Capital.
Bei Duoguang, managing director of China International Capital, and also president of GP Capital, said yesterday in Shanghai that GP Capital targets nationwide financial institutions as investment opportunities, including insurers, banks, fund management companies, brokerages and trust firms.
Bei also said he didn't rule out the possibility of including China's social security fund as a future partner although no discussion has been carried out so far.
Shanghai is pulling out all the stops to attract more private equity or venture capital firms to the city.
Fang Xinghai, director of the Shanghai Financial Services Office, has urged more support from the central government for private equity fund management companies registered in Pudong to get preferential policies to nurture the market in the city.
The Pudong New Area in June issued a rule to attract overseas private equity companies. So far, four overseas institutions have applied to set up in the area. The State Council has allowed 10 private equity funds.
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