Yuan fund is 2nd set-up within 1 week
By Lydia Chen |
May 19, 2011, Thursday
|
Print Edition
Print Edition
MORGAN Stanley yesterday launched its first yuan-denominated fund in Hangzhou, east China's Zhejiang Province, as it seeks to invest in Chinese companies that are restructuring and facing challenges to integrate in the market.
The United States investment giant teamed up with Hangzhou Industrial and Commercial Trust Co for a fund to raise 1.5 billion yuan (US$231 million) initially. Morgan Stanley will rely on its existing financial platforms to raise money for the new private-equity fund.
The 75-year-old investment bank will hold 80 percent of the fund while Hangzhou Trust will own the rest. Morgan Stanley will have four of the five member seats in the new PE fund, which is the second to be set up within a week after Goldman Sachs Group Inc last week launched a similar one with its government-backed Chinese partner that aims to raise 5 billion yuan.
Morgan Stanley, which has PE investments in China ranging from Ping An Insurance Co, dairy giant Mengniu to shoe seller Belle International, is also close to launching its brokerage joint venture with China Fortune Securities this summer.
China has boosted efforts to encourage the development of the PE industry. In April, a total of 12 PE funds totaling nearly US$3.22 billion were launched in the country. Five of them are US dollar-denominated while the remaining are in yuan, according to Zero2IPO Research Center, a PE research firm.
The center forecast PE funds may raise a record US$30 billion on the Chinese mainland this year.
Shanghai, Beijing and Tianjin are working on schemes to allow more foreign investors to join yuan-denominated PE funds so they can invest money raised abroad in China without seeking permission from the foreign exchange regulator.
Shanghai is reviewing a second batch of foreign firms under the Qualified Foreign Limited Partners scheme after Blackstone, Carlyle Group and DT Capital Partners were approved in mid-March.
The United States investment giant teamed up with Hangzhou Industrial and Commercial Trust Co for a fund to raise 1.5 billion yuan (US$231 million) initially. Morgan Stanley will rely on its existing financial platforms to raise money for the new private-equity fund.
The 75-year-old investment bank will hold 80 percent of the fund while Hangzhou Trust will own the rest. Morgan Stanley will have four of the five member seats in the new PE fund, which is the second to be set up within a week after Goldman Sachs Group Inc last week launched a similar one with its government-backed Chinese partner that aims to raise 5 billion yuan.
Morgan Stanley, which has PE investments in China ranging from Ping An Insurance Co, dairy giant Mengniu to shoe seller Belle International, is also close to launching its brokerage joint venture with China Fortune Securities this summer.
China has boosted efforts to encourage the development of the PE industry. In April, a total of 12 PE funds totaling nearly US$3.22 billion were launched in the country. Five of them are US dollar-denominated while the remaining are in yuan, according to Zero2IPO Research Center, a PE research firm.
The center forecast PE funds may raise a record US$30 billion on the Chinese mainland this year.
Shanghai, Beijing and Tianjin are working on schemes to allow more foreign investors to join yuan-denominated PE funds so they can invest money raised abroad in China without seeking permission from the foreign exchange regulator.
Shanghai is reviewing a second batch of foreign firms under the Qualified Foreign Limited Partners scheme after Blackstone, Carlyle Group and DT Capital Partners were approved in mid-March.
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