FUNDS

Cathay Capital Invests $41M In Ad Platform Smart AdServer

Cathay Capital Invests $41M In Ad Platform Smart AdServer

Sino-French private equity firm Cathay Capital Private Equity has acquired global advertising management platform Smart AdServer, according to a company announcement. The transaction value is not disclosed, but media reports have put the number at €37 million (US$41 million).

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Lightspeed China Injects $12M Series A In Yikuaixiu.Com

Lightspeed China Injects $12M Series A In Yikuaixiu.Com

Beijing-based O2O (online-to-offline) platform for automotive after sales service Yikuaixiu.com has received US$12 million series A financing from Chinese venture firm Lightspeed China Partners, according to Chinese media reports. The company says it will use the proceeds to expand its offerings and to build more offline stores in major cities in China.

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Baring Private Equity Asia Closes Sixth Fund At $3.988B

Baring Private Equity Asia Closes Sixth Fund At $3.988B

Asian private equity firm Baring Private Equity Asia has reached final closing of its sixth fund, the Baring Asia Private Equity Fund VI, at a hard cap of US$3.988 billion, according to a company announcement. The fund reached its first closing of US$3.3 billion last year within four months of launching. The latest fund will […]

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Shunwei Capital Completes Raising First RMB Fund

Shunwei Capital Completes Raising First RMB Fund

Shunwei Capital, a private equity and venture investment firm co-founded by Lei Jun, the founder of Chinese smartphone maker Xiaomi Inc., has completed raising RMB1 billion (US$160 million) for its first RMB fund, according to Lei Jun's official Weibo account. The fund completed capital raising before the end of year of the horse, says the […]

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Venture-Backed La Chapelle To Acquire 54% Of Anshe E-Commerce

Venture-Backed La Chapelle To Acquire 54% Of Anshe E-Commerce

Chinese multi-brand apparel group Shanghai La Chapelle Fashion Co., Ltd., backed by a slew of venture and private equity investors, says it has agreed to acquire 45% of online fashion retailer Hangzhou Anshe E-Commerce Co., Ltd. for RMB135 million (US$21.6 million), according to a company announcement. La Chapelle has also agreed to inject RMB65 million […]

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Venture-Backed Didi Dache, Kuaidi Dache To Merge

Venture-Backed Didi Dache, Kuaidi Dache To Merge

On Valentine's day, two of China's largest taxi-hailing mobile app operators, Didi Dache and Kuaidi Dache, say they would merge their businesses to create an absolute industry leader in China, according to an announcement posted on Didi Dache's official Weibo account. The merger would mark an end to a bitter and expensive price war between […]

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Baidu Reportedly Invests In Online Education Firm HuJiang.Com

Baidu Reportedly Invests In Online Education Firm HuJiang.Com

Chinese search engine operator Baidu Inc. has invested approximately US$100 million series C financing in Shanghai-based online education firm HuJiang.com, according to unverified Chinese media reports. Representatives at HuJiang.com did not respond to inquiries to confirm the news. The investment reportedly values the company at US$800 million, and has been completed in 2014.

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RRJ Capital To Invest $49M In Education Firm Tsingda eEdu Corp

RRJ Capital To Invest $49M In Education Firm Tsingda eEdu Corp

Asia-focused private equity firm RRJ Capital is reportedly investing US$49 million in Chinese online education company Tsingda eEdu Corporation, according to media reports. RRJ Capital did not respond to inquiries to confirm the news. RRJ has the option to increase its investment to US$100 million in the future, which would make it the Beijing-based company's […]

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Job Hunting Site Nashangban Completes $4M Series A Round

Job Hunting Site Nashangban Completes $4M Series A Round

Beijing-based job hunting website Nashangban.com has completed RMB25 million (US$4 million) series A financing, according to official announcements on its Weibo and Facebook accounts. A number of Chinese local investors participated in this round, including Rushan Investment Management Co., Ltd, investment arm of Chinese diversified industrial group DunAn Holding Group.

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ECONOMY

China's New Loan Reaches RMB1.47T In January

China's new RMB loans stood at RMB1.47 trillion in January, beating market expectations of RMB1.35 trillion, and compares with RMB697 billion in December 2014, and RMB1.32 trillion in January, 2014, according to data released by the People’s Bank of China. Outstanding total RMB loan grew 13.9% year-on-year in January, compared with last month's 13.6% increase.

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China's CPI Increases 0.8% In January

China consumer price index (CPI) increased 0.8% year-on-year in January, down by 0.7 percentage points from the previous month, the lowest since November 2009, according to data released by China's National Bureau of Statistics. Producer price index (PPI) was below market consensus, declining 4.3% year-on-year in January, compared with December's 3.3% drop. The gauge has […]

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China's Exports Register Surprise Decline Of 3.2% In January

China's exports surprisingly declined by 3.2% in January 2015, compared with a growth of 9.9% in the prior month. Imports also dropped sharply by 19.7%, versus a 2.3% decline in the previous month, according to data released by China's General Administration of Customs. As imports continued to under-perform, China registered another record high monthly trade […]

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China's Official PMI Drops To 49.8 In January

China’s official PMI, the bellwether of large industrial firms, declined to 49.8 in January, the first time since September 2012 that it  dropped to below the benchmark level of 50, according to data released by China’s National Bureau of Statistics.

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China's HSBC Flash PMI Increases To 49.8 In Jan

China's January HSBC flash manufacturing purchasing managers’ Index (PMI) ticked up by 0.2 percentage points, coming in at 49.8, slightly higher than December's 49.6, beating the market consensus, according to data released by the HSBC Group. January HSBC Flash China Manufacturing Output Index came in at 50.1, compared with 49.9 in December.

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China's GDP Slows To 7.4% In 2014

China’s GDP growth expanded by 7.4% in 2014, the slowest pace since 1990 and down from 7.7% in 2013, according to China's National Bureau of Statistics.

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China's New Loan Slides To RMB697B In December

China's new RMB loans reached RMB697.3 billion in December, lower than market consensus of RMB880 billion, according to data released by the People’s Bank of China.

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China's Exports Growth Jumps To 9.9% In December

China's exports jumped 9.9% from a year ago in December, beating consensus estimates of a 6.8% increase and also stronger than a 4.7% climb in November, according to data released by China's General Administration of Customs. Imports fell 2.3% in December, narrower than a forecast drop of 7.4% and following November's much larger 6.7% decline.

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China's CPI Climbs 1.5% In December

China consumer price index (CPI) increased 1.5% year-on-year in December, up by 0.1 percentage points from the previous month, driven by higher fresh food prices, according to data released by China's National Bureau of Statistics.

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BUSINESS

Compensation For Asian Private Equity Professionals Poised To Rise

Compensation For Asian Private Equity Professionals Poised To Rise

As regional and global private equity firms expand operations and dig deeper into major markets in the Asia Pacific region, competition for private equity investment professionals continues to rise and is likely to increase further throughout 2015, according to a survey conducted by global executive search firm Heidrick & Struggles International, Inc. Around 64% of […]

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Warburg Pincus Fully Exits 19% Stake Of Tulip Media

Warburg Pincus Fully Exits 19% Stake Of Tulip Media

Global private equity firm Warburg Pincus has fully exited Shanghai-headquartered outdoor advertising firm Tulip Media Corporation via a strategic transaction as Shenzhen-listed Shanghai New Culture Media Group has acquired 100% of Tulip, according to a security filing. During the transaction, Warburg Pincus has sold its 19.14% stake, or 32 million shares, for RMB230 million (US$37 […]

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Alibaba Invest $590M In Smartphone Maker Meizu

Alibaba Invest $590M In Smartphone Maker Meizu

Chinese e-commerce giant Alibaba Group Holding Limited says it has agreed to invest US$590 million for a minority stake in Zhuhai city, Guangzhou province-based Chinese smartphone maker Meizu Technology Corporation Limited, according to a company announcement. In December 2014, media reports surfaced that Meizu has received RMB2 billion (US$320 million) of financing cumulatively from an […]

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Standard Chartered Prices RMB1B Collateralized Loan Obligation Deal In China

Standard Chartered Prices RMB1B Collateralized Loan Obligation Deal In China

Standard Chartered Bank (China) Co., Ltd has priced its first Collateralized Loan Obligation (CLO), the Zhen Cheng Credit Asset Secularization 2015-1 Asset-backed Securities, in China last Friday, among the first batch of foreign banks to participate in the credit asset secularization pilot program in China, according to a company announcement. The issuance is approximately RMB1 […]

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Nomura Makes Two Appointments In Its Research Department

Nomura Makes Two Appointments In Its Research Department

Nomura has appointed Zhao Yang as its China chief economist and Sophie Jiang as head of Hong Kong and China banks equity research, as the firm continues to enhance its research platform in the region, according to a company announcement. Zhao Yang will lead a team of three economists to forecast China’s economic cycle and […]

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China's Private Equity Records First Rebound In Exits After Three Down Years

China's Private Equity Records First Rebound In Exits After Three Down Years

After three years of dwindling exits, Chinese private equity funds finally achieved a rebound in investment exits last year. In 2014, a total of 232 exits were recorded, up from 126 in 2013, according to a research report by global accounting firm PricewaterhouseCoopers. The rebound was driven by both an increase in exits through initial public […]

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Asia Frontier Capital, LyGH Capital Among Top 20 Performing Hedge Funds

Asia Frontier Capital, LyGH Capital Among Top 20 Performing Hedge Funds

Hong Kong-based Asia Frontier Capital, Singapore-based LyGH Capital, and CITIC Securities International Fund Management Limited are among the top 20 performing hedge funds globally in 2014, according to industry data tracker Preqin. Long-biased AFC Asia Frontier Fund recorded net returns of 37.58% last year, while GH China Century Fund and CITIC China Alpha II Fund […]

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Online Retail Spending In China Will Exceed $1T By 2019

Online Retail Spending In China Will Exceed $1T By 2019

Online retail spending in China will exceed US$1 trillion by 2019, up from US$307 billion in 2013, according to a new forecast from research and advisory firm Forrester Research, Inc. Mobile retail spending will also grow at 44.2% compound annual growth rate (CAGR) from 2014 to 2019, twice as rapid as online sales, which is […]

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Alibaba Begins Drone Delivery Trials In China

Alibaba Begins Drone Delivery Trials In China

Chinese e-commerce giant Alibaba Group Holdings says its Taobao Marketplace shopping site has partnered with Shanghai YTO Express Logistics Co. to begin a three-day trial of drone delivery technology in Beijing, Shanghai, and Guangzhou today, according to a company announcement. During the test, parcel-packing quad-copters will be used to ferry boxed sets of products high […]

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OPINION

China's Monetary Conditions Tightened In January, More Easing To Come

China's Monetary Conditions Tightened In January, More Easing To Come

China's January sequential total social financing growth slowed significantly, despite modestly faster growth in new local currency loans, reflecting an unfavorable monetary and fiscal policy stance despite the apparent desire to loosen policy, says a research report by Goldman Sachs/Gaohua senior China macro economist, Song Yu. New RMB loans stood at RMB1.47 trillion in January, […]

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Understanding China's Surging Capital Outflows

Understanding China's Surging Capital Outflows

China has seen significant capital outflows in the past few quarters, but the Chinese authorities are likely to maintain a stable RMB, with the Chinese currency likely appreciate at a modest pace of less than 3% by year-end while experiencing periodic bouts of two-way movements throughout 2015, says a research report by UBS AG. China's […]

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Five Reasons Why China Must Ease Monetary Policy Further

Five Reasons Why China Must Ease Monetary Policy Further

The People’s Bank of China (PBoC) has decided to cut banks' reserve requirement ratio (RRR) by 50 basis points, effective today. The move is necessary to arrest further economic slowdown, and it is just the beginning of a series of monetary easing actions down the road, says a research report by Nomura. The reports says […]

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China's Shadow Banks May Have Expanded 58% In 2014

China's Shadow Banks May Have Expanded 58% In 2014

The size of China's shadow banking sector may have expanded by 58% to RMB51.2 trillion (US$8.19 trillion) in 2014, a sharp acceleration from 2013's RMB32.4 trillion (US$5.18 trillion), potentially making China's financial system much more fragile, says a research report by BofA Merrill Lynch Global Research. There are many ways to gauge the size of […]

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China Finally Cuts Bank Reserve Requirement Ratio

China Finally Cuts Bank Reserve Requirement Ratio

The People’s Bank of China (PBoC) today announced that it would cut the reserve requirement ratio (RRR) by 50 basis points to 19.5% for large financial institutions, effective tomorrow. This will immediately inject up to RMB600 billion (US$96 billion) to the banking system, which could help lower companies' funding cost. In addition, the central bank […]

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China January Macro Economic Data Preview

China January Macro Economic Data Preview

China's monthly macro data in January and February are hard to interpret, as they can be significantly distorted by the different timing of the Lunar New Year. This year is no different, as the holiday will start from February 18, later than January 31 last year. Therefore, it's better to read January to February data […]

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China’s Dim Sum Bond Market Growth Will Accelerate

China’s Dim Sum Bond Market Growth Will Accelerate

The authors are Fitch Ratings' senior directors Matt Jamieson and Sabine Bauer The currency of China continues its ascent among global payments settlement, trade, and currency investment. With support from a rapidly expanding network of offshore Yuan clearing centers, Fitch Ratings expects the proliferation of these offshore clearing centers to drive greater issuance of Dim […]

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China Scrutinizes Bank Margin Loan Practices

China Scrutinizes Bank Margin Loan Practices

The Chinese regulators are disciplining bank margin trading loan practices in order to restrain speculation in the stock market, perhaps as a precursor to the central bank's monetary easing policies, according to a research report by Nomura Holdings. China’s benchmark interest rates cut on November 21, 2014 helped to trigger a 40.7% surge in the […]

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Despite China's Economic Slowdown, Private Investors Remain Optimistic

Despite China's Economic Slowdown, Private Investors Remain Optimistic

The author is Brett Tucker, partner at private equity firm Baird Capital China continues to be a rising power in the global economy, but accessing private equity opportunities in this evolving market has become more complex in the recent past. After years of high growth, China’s GDP growth grate hit its lowest mark in five […]

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