Why RMB fund becomes the new favorite of foreign capital

Xinhua Shanghai February 25 Question: Why RMB funds become foreign "new darling"? The international well-known equity investment company Carlyle Group 24th and the domestic largest comprehensive private enterprise Fosun Group announced jointly, the two sides will jointly set up a joint-brand renminbi fund. It is also the second renminbi fund that Carlyle has set up in less than two months. [Related reading: Carlyle to set up renminbi fund "China theme" investment to attract global attention in the past two years, in contrast to the global investment market after the international financial crisis, the domestic investment market has frequently appeared in the shadow of foreign equity investment (PE) giants, and the establishment of RMB funds has become a new hot spot for foreign investment.　　What impact and impact will this trend have on the emerging domestic equity investment industry? Foreign PE giants frequently "Occupy" the "China theme" investment to attract global attention Fosun Group and the Carlyle Group joint venture RMB fund down to 100 million U.S. dollars. The two sides said that the fund is now in place, can immediately invest, the main direction of investment targeted at domestic high-growth enterprises and can benefit from China's economic growth of international enterprises.　　In addition, the two sides will soon start to face domestic investors to raise more funds for this fund. In January this year, Carlyle Group has signed an agreement with the Beijing Municipal Bureau of Financial Services to set up a pure renminbi fund of 5 billion yuan in Beijing. "China's rapid economic development has made China one of the most promising regions in the world for investment," he said. "Rubenstein, co-founder and managing director of Carlyle Group, said.　　Currently, Carlyle Investment Group has invested more than 40 projects in China, with an investment of more than 2.5 billion dollars. The rapid pace of the Carlyle Group's establishment of renminbi funds is only a microcosm of the recent acceleration of foreign PE giants ' domestic investment market.　　In addition to Carlyle, since 2009, Blackstone Group, DFJ Investment Group, CLSA and other international well-known investment groups have accelerated the pace of investment in the domestic market, launched the establishment of renminbi funds. Last October, Blackstone announced the establishment of a Blackstone China Equity Investment Management company in Pudong, Shanghai, and the company will raise about 5 billion RMB funds. "The newly-raised RMB fund will uphold Blackstone's original investment strategy and focus on the leading quality enterprises in the domestic industry." Said Mr Antony Leung, head of the Greater China region of Blackstone Group.　　According to the introduction, Blackstone's RMB fund will be the government's promotion of new energy, environmental science and technology, clean energy and other industries to be highly concerned about the investment in the region will be Shanghai as the center, covering the whole country. China's inevitable trend of participating RMB funds in the distribution of foreign capital for a long time, in the domestic investment market, foreign funds occupy the dominant advantage, the local renminbi funds are always trailing edge, but in 2009 RMB funds finally achieved a "gorgeous turn".　　According to the data from the research center of the Qing Branch, the RMB funds in China's equity investment market in 2009 exceeded foreign currency funds in terms of fund-raising quota and investment activity. Professor Lu Hongjun, dean of the Shanghai Institute of International Finance, said that after goldAfter the baptism of the crisis, the assets of many foreign investors have shrunk sharply, the investment attitude tends to be cautious and foreign currency fund raising is extremely difficult.　　In contrast, China's economic stability is good, the relatively abundant domestic liquidity provides a guarantee for the raising of RMB funds; In addition, the smooth launch of domestic gem to achieve a "local collection, local investment, local withdrawal" of the benign circulation channels, sharp-eyed foreign equity investment enterprises will naturally not miss such opportunities. In the domestic market, the development of renminbi funds has a unique condition. Lenovo Investment managing director Li Jiaqing told reporters that China's capital market low listing costs, high P/E, low risk and cultural and legal localization and other advantages, making more and more private enterprises tend to the domestic listing.　　Foreign currency funds in the domestic investment by some regulatory restrictions, in many industries foreign currency funds can not invest in the entry and exit foreign currency funds also have a lot of inconvenience. "From this point of view, foreign participation in RMB funds is a long-term development trend."　　Shaw, founder partner of Germany and capital, said that the high growth of our enterprises and the return of high P/E in our market always attract foreign capital. Opportunity and risk coexist Chinese capital should be good at "borrow boat to go to sea" experts such as Shanghai Federation of Industry and Commerce Wang Niu that foreign PE competed to set up RMB funds to domestic enterprises as the investment focus, which helps to alleviate the outstanding contradictions between the huge amount of social funds idle and the shortage of funds in small and medium-sized enterprises　　Conducive to the transformation of economic development mode, in this process, domestic PE can also learn foreign investment ideas and investment strategies, to overcome the current generally more quick short-term investment mentality. But on the other hand also want to see, foreign PE concentrated firepower for the domestic market, objectively on the initial stage of the domestic equity investment industry constitutes a huge competitive pressure, domestic PE must learn to "dance with the Wolves."　　Experts pointed out that, while learning foreign PE mature experience, Chinese capital can also rely on their unique advantages in the international investment Market, successfully realize the "borrow ship to sea." The comprehensive strategic cooperation between Fosun Group and Carlyle Group is not limited to the domestic market. The two sides said they will also invest in overseas markets when the time is ripe.　　Liang, vice chairman and CEO of Fosun Group, said the cooperation between Fosun and Carlyle would allow Fosun to stand on the global stage to capture China's investment opportunities, thereby creating greater development space for Chinese enterprises and entrepreneurs and providing a richer path to docking global capital. For a long time, China's investment in the sea and mergers and acquisitions of the main actors are large state-owned enterprises. Along with the rise of China's private enterprises, private enterprises in overseas investment and acquisition gradually began to play an important role.　　Li Ruhui, analyst at the Research Center of the Qing branch, said that after more than 20 years of fierce market competition, the private enterprises already have strong management ability and market development ability, and its flexible and efficient decision-making mechanism makes it easier to seize market opportunities in overseas investment and acquisition. At the end of 2009, Guangdong Private Enterprises Foshan ShundeJapan New Development Co., Ltd. announced that the 15 billion yuan acquisition of Chile's giant iron ore mining rights and Geely car will buy Volvo and other events, the future of private enterprises in the overseas investment and acquisition market will be a big deal.