News Review: China’s August PMI, New Loan Issuance, Upcoming Hong Kong IPOs

In this episode of China Money Podcast, our host Nina Xiang reviews the most important investment news this week: – China’s August PMI recovers from July, pointing to an economic soft landing – RMB1.63 trillion trade settled in the Chinese currency until July: faster growth ahead with projections of US$2 trillion trade settled in RMB by 2015 – Slow progress is witnessed a year after China allows insurance companies to allocate 5 percent of their assets to private equity investment …

Monte Brem: Investors Must Safeguard Against RMB Fund Preferential Treatment In China

In this episode of China Money Network, guest Monte Brem, CEO of private equity firm StepStone Group, shares his firm’s investments in China and how offshore investors can protect themselves when investing with local Chinese managers. Listen to the full-interview in the audio podcast, watch the shortened video version or read an excerpt. Q: You have been relocated to China for more than two years, and StepStone’s office in Beijing opened about two years ago. How have your businesses in …

3SBio Inc. Gets Higher Bid From CEO and CITIC Private Equity

3SBio Inc., a Chinese biotechnology company, says a consortium has raised its offer to take the Shenyang-based company private for about US$370 million. The consortium includes 3SBio’s CEO Dr. Jing Lou and CPEChina Fund, a China-focused private equity fund associated with CITIC Private Equity Funds Management Co.

Focus Media Privatization Deal Gets Green Light From Shareholders

NASDAQ-traded Focus Media says today that shareholders have voted to approve a deal to privatize the company, adding to a long list of Chinese companies that have quit foreign exchanges. Previously announced on December 19 last year, the go-private deal values the Shanghai-based Chinese advertising company at US$3.7 billion at a price tag of US$27.50 per American Depositary Shares (ADS), a premium of 17.6% over its last day’s closing price before the announcement.

CITIC Capital, Edward Tian Push Forward On AsiaInfo-Linkage Go-Private Deal

An investor consortium led by CITIC Capital Partners says it has signed a definitive merger agreement to take NASDAQ-listed Chinese company AsiaInfo-Linkage, Inc. private in a US$890 million deal. Beijing-headquartered AsiaInfo-Linkage is a software and IT services provider to the telecommunications industry. The buyer consortium is led by US$2.6 billion-under-management

CITIC PE Establishes Joint Venture With Sprott Inc.

Canadian alternative asset manager Sprott Inc. says that it has entered into a joint venture agreement with CITIC Private Equity Hong Kong Management Co. to set up an offshore global resource fund. The fund will focus primarily on investment opportunities in equities and debt of global resource companies. It will be co-managed by affiliates of Sprott and CITIC PE HK.

IFC Plans $20M Investment In BioVeda China Fund

IFC, a member of the World Bank Group, is proposing to make an investment of up to US$20 million in BioVeda‘s third China Fund, BVCF III, L.P. IFC’s investment is not to exceed 10% of the total capital of the fund. Shanghai-based BioVeda is targeting to raise US$200 million to invest in growth-stage life sciences and healthcare companies in China.

Actis Capital Exits Chinese Kitchen Equipment Maker Vesta

Glenview, IL-based Illinois Tool Works Inc. says that it has acquired Vesta (Guangzhou) Catering Co., a kitchen equipment maker owned by Actis Capital, a private equity firm investing exclusively in Africa, Asia and Latin America. The terms of the deal are not disclosed, but the exit came just a little over two years after Actis Capital invested in Guangzhou-based Vesta in May 2011.

CITIC Capital Closes $113M China Venture Fund

CITIC Capital Holdings Ltd. (CITIC Capital) says its debut China venture fund, CITIC Capital Venture Partners, has reached final closing of US$113 million. The fund originally targeted to raise US$150 million. It is among numerous fund managers raising funds short of their targets.

Potential Tighter Regulations On Interbank Exposure Will Squeeze Chinese Banks

The author is Michael Werner, senior research analyst covering the Chinese and Hong Kong banks at Sanford Bernstein & Co. The Growth of interbank exposures at the Chinese Banks has been Alarming. Interbank exposures more than tripled at joint-stock banks over the past 4.5 years, and now make up 21% of their total assets vs. just 8% at large banks.

Anla Cheng: China’s IPO Market Might Open Sooner Than You Expect

In this episode of China Money Podcast, guest Anla Cheng, partner at Sino-Century China Private Equity Partners, talks with our host Nina Xiang, about the importance of protecting intellectual property for companies in China’s financial information sector, why she thinks China’s IPO market might open sooner than expected, and her hopes for the realization of substantive reforms in China. Read an excerpt below, but be sure to listen to the full interview in audio or watch an abbreviated video version. …

China’s Monetary Policy Will Remain Tight As Fight Against Shadow Banking Continues

The author is Michael Werner, senior research analyst covering the Chinese and Hong Kong banks at Sanford Bernstein & Co. In December, the Chinese banks underperformed the the MSCI Asia Pacific Excluding Japan Index (MXAPJ) by 300 basis points (bp) as eight of the nine Hong Kong-listed Chinese banks underperformed the market on the back of investor concerns regarding the seasonal year-end interbank liquidity squeeze.

Private Equity Firms Speed Up Investments In China

Chinese venture and private equity firms executed a total of 89 investments during the fourth quarter of 2013, making it the most active quarter since the third quarter of 2011, according to a release by the Emerging Markets Private Equity Association (EMPEA).