New Private Equity Fund to set up in China

Hong Kong brokerage CLSA is setting up a 10 billion yuan ($1.4 billion) private equity fund with Chinese state-owned investment firm Shanghai Guosheng Group.

The companies signed an agreement to create a joint venture – named Guosheng CLSA (Shanghai) Industrial Investment Management Co Ltd – by the end of 2009 and launch the fund, which will invest in renewable energy, environment protection and consumer-related sectors.

For China, the operation is meant to reduce firms’ dependence on bank financing by boosting the number of yuan-denominated funds.

FinSMEs

18/08/2009

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