Foreign PE China Re-entrepreneurship: known as "ghost" Operation superb

Foreign PE has again aroused the concern of the investment community.　　September Zhongyuan Stone Fund finally entered the audit phase, so many people were surprised that the Zhongyuan securities led the establishment of the fund company, another major shareholder is quietly change, the original Yingjie China Insurance Group (AVIVA) changed to have a British background equity investment company-"Ashmore Investment" (Ashmore).　　In the same month, a national Bank of China opened a subsidiary of the financial company and the French Trust Savings Bank jointly established by the Sino-French fund officially announced to the Kai FAI fund Management, a can simultaneously invest in the two countries of the mixed-blood fund is quietly established. There has been a local industry insiders use the term "ghost" to describe the investment style of foreign PE, said its modus operandi superb. From the end of last century into China until now, these international investment institutions witnessed the Chinese economic cycle every moment of change.　　Decades of roll in the Chinese market have also allowed them to become more localized.　　Facing the strong rise of local PE and the limited investment of US dollar funds, the living space of foreign PE has been compressed, and their golden age is really over? From 2010 onwards, China's PE institutions have suddenly developed from hundreds of to thousands of.　　In 2010, China's local renminbi private equity fund accounted for 67% of the total financing, compared with 18% in 2007, according to the figures. Older foreign funds are hard to avoid historical-style path dependence, more willing to practice in the Chinese market the foreign mature capital market that set of mergers and acquisitions investment model and the very early investment mode, while the history of the local investment institutions are short of a glimpse of the existence of institutional spreads, for high growth projects,　　The pure merger investment and the very early investment pattern are still groping stage. And because U.S. capital markets closed the IPO window for Chinese companies, it also affected its IPO exit.　　In the market is not good, many foreign PE institutions are generally experiencing adjustment and contraction.　　In addition, the United States dollar funds under the policy constraints also greatly hurt the development momentum of foreign PE. In 2006, foreign Exchange Bureau and other ministries promulgated the "Foreign investors mergers and acquisitions of domestic enterprises interim provisions", the requirements of domestic enterprises to transfer control to the outside needs to be approved, thus cutting off the foreign PE has always been good at overseas financing, overseas exit "both ends" of the investment model, the advantages of foreign currency　　RMB funds become the choice.　　Large foreign institutions such as Carlyle, TPG, Goldman Sachs, Morgan Stanley, Blackstone, JPMorgan Chase and CLSA have launched renminbi funds since July 2010.　　According to statistics, before 2009 foreign currency funds once dominated the world, but by 2009 foreign currency fund proportion accounted for 47.51% of the total, has been more than RMB funds, the 2010 Foreign Currency fund further down to 36.57%. At the same time, the PE institutions that manage the dollar and RMB funds are like "two-headed animals", if the red-chip structure, the renminbi can not go overseas investment in the case of investment in the United States dollar fund; If on a restrictive lineIndustry, only to allow renminbi investment in the case, the use of renminbi funds to operate, more flexible. "Like some high-tech or internet companies, it's not as big a domestic listing as it is for a dollar-funded project to go overseas," he said.　　"The managing director of a local investment agency said to reporters of excellence. Because the rules of the game inside and outside are very different. Not only familiar with foreign assets, but also understand domestic enterprises.　　Therefore, familiar with Chinese politics, via local government to set up RMB funds, invariably become a large number of foreign investment companies in China two of the means of entrepreneurship. "Our domestic LP is mainly local government and some large state-owned enterprises." "Hu, managing director of Infiniti, told the Press of Excellence.