Home / Business / Finance Tools: Save | Print | E-mail | Most Read
China should encourage foreign PE to raise yuan funds
Adjust font size:

China should encourage foreign private equity (PE) firms to raise funds in yuan on the domestic market to absorb the country's excess liquidity, Wu Xiaoling, deputy governor of the People's Bank of China, said Thursday.


"Private equity funds have served as the accelerator of enterprises," said Wu at the International Finance Forum held in Beijing.


She added that private equity had brought active results on the development of the Chinese capital market.


"However, I hope foreign private equity funds would make more use of the yuan market given the liquidity problem and an expanding surplus in international payments," Wu said.


"What the country needs is not money, but expertise in investment and management of private equity funds," Wu said, adding that Chinese expertise in managing private equity funds was scarce.


Encouraging foreign private equity teams to establish yuan-denominated funds in China would be an effective way to cultivate talents, she said.


Wu personally suggested that private equity joint ventures in which foreign investors hold less than 25 percent should be treated as domestic funds, which are allowed to invest in broader areas.


But the authorities still need to carefully decide the maximum investment allowed by foreign private equity in Chinese companies, and restrict them in raising funds with depository banking institutions, she said.


(Xinhua News Agency November 9, 2007)


Tools: Save | Print | E-mail | Most Read

Username Password Anonymous
China Archives
Related >>
- China's VC and PE markets see monthly new high
- China's first private equity fund invests 1.5 bln yuan in Tianjin Pipe
Most Viewed >>
- Gold futures jumps to daily limit upon debut
- Chinese economy in 2007
- Survey: B2B transaction volume up 25.5% in 2007
- Policy bank eyes rail project stake
- China Eastern not to ally with Air China

Nov. 1-2 Tianjin World Shipping (China) Summit
Nov. 7-9 Guangzhou Recycling Metals International Forum
Nov. 27-28 Beijing China-EU Summit
Dec. 12-13 Beijing China-US Strategic Economic Dialogue

- Output of Major Industrial Products
- Investment by Various Sectors
- Foreign Direct Investment by Country or Region
- National Price Index
- Value of Major Commodity Import
- Money Supply
- Exchange Rate and Foreign Exchange Reserve
- What does the China-Pakistan Free Trade Agreement cover?
- How to Set up a Foreign Capital Enterprise in China?
- How Does the VAT Works in China?
- How Much RMB or Foreign Currency Can Be Physically Carried Out of or Into China?
- What Is the Electrical Fitting in China?