#1: [转帖]China May Draw $6B in Private Equity--(Future is bright) (1377 reads) 作者: youhighness, 来自: 哲里木盟科尔沁左翼中旗木里图苏木爱搞不搞嘎查时间: 2006-11-01 周三, 05:24 — 作者：youhighness 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
Todays Risk eNews
Credit Risk - China May Draw $6 Billion in Private Equity in 2006
Author: Ellen J. Silverman
China may attract at least $6 billion in private-equity investments this year, as buyout firms raise bets on economic growth and a rebound in stocks provides companies with profits.
China may attract at least $6 billion in private-equity investments this year, as buyout firms raise bets on economic growth and a rebound in stocks provides companies with profits.
Investors boosted first-quarter buyouts, equity purchases and venture capital almost eightfold to $3.9 billion from a year earlier, according to Kathleen Ng, managing director at the Hong Kong-based Centre for Asia Private Equity Research Ltd. Overseas strategic investors were given access to China's domestic share market in February.
Such investors must buy at least a 10 percent stake and hold it for three years. Regulators this week lifted a one-year ban on listed companies selling stock, as the country moves toward resuming domestic initial share sales. “With the reforms in the domestic market, that will open another route for potential exits,'' said Chris Gradel, managing partner at Hong Kong-based Pacific Alliance Group.
There were $255.3 billion of announced buyouts globally last year according to data compiled by Bloomberg, a third more than in 2004. Year to date, private equity firms have made $146 billion of transactions, 60 percent ahead of last year. China's benchmark Shanghai Composite Index has climbed 32 percent this year, its highest in almost two years. “Chinese stocks are in such a favorable position that you will find investors can dispose of their shares or holdings very quickly,'' Ng said. Completed private-equity transactions in China rose to $3 billion last year from $1.25 billion in 2004, and may at least double this year, she said.
China has become the world's fourth- largest economy last year. The economy expanded 10.2 percent to $540 billion in the first quarter. China accounted for 22 percent of private-equity investment in Asia last year, ranking second to Japan. The number of completed deals in China rose to 90 last year from 68 in 2004. “Fundamentals in China remain very strong,'' said Jamie Paton, head of North Asia at 3i Group Plc, Europe's biggest publicly traded buyout firm. “GDP growth is a huge driver of that. We are planning to invest more,'' he said.
Buyouts in Asia reached $13.1 billion this year, from $4.96 billion a year earlier and more than $12.6 billion for all of last year, according to Bloomberg figures. Private equity investors exited 48 China investments last year raising $1.86 billion, compared with 46 exits valued at $1.05 billion in 2004. A survey of 45 exits last year showed 44 percent of them had an internal rate of return of more than 200 percent. “The outlook for private equity investment in China is good,'' said Jeanette Chan, a Hong Kong-based partner at the U.S. law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. “The Chinese stock markets are doing well, which increases investor confidence.''
Increased competition will push deal sizes up, according to Ng and Chan. Also, the government will try not to sell assets for less than they're worth, they said. “It's a fluctuating environment for buyout investors at the moment,'' said Ng. “China doesn't want to sell the state assets cheaply and yet it's also desperately in need of foreign expertise. It's not an easy process at all.''
