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Reuters Shanghai – The investment banking arm of China Construction Bank plans to launch a 5 billion yuan ($731.3 million) fund to focus on investments in the country’s rapidly growing heathcare sector, state media reported on Tuesday.
Hong Kong-based CCB International is leading the fundraising but has not yet reached the initial target of 5 billion yuan, the online edition of the official Xinhua News Agency (www.xinhuanet.com) said.
Once launched, the fund would focus on investments in healthcare-related sectors including pharmacy, medical equipment manufacturing, medical institutions and services, Xinhua quoted CCB International’s chief executive, Hu Zhanghong, as saying.
Reuters – Shanghai has decided to let foreign investors, including private equity and venture capital funds, register legally as local equities investment firms as China’s financial hub moves to lure more overseas investment.
Foreign investors with a focus on Chinese equities can set up a Shanghai-registered entity with initial capital of 100 million yuan ($14.56 million) or more with the legal status of a local investment company and receive special tax treatment, according to a city government document dated Aug. 11 and obtained by Reuters on Friday.
Qualified foreign investors would include private equity funds, venture capital funds, buyout funds and hedge funds, it said.
BEIJING (Reuters) – Bank of Communications Schroders Fund Management Co is aiming to raise up to 1 billion yuan for its first overseas fund later this month, despite sliding global financial markets, two company sources said.
Poor market conditions have sapped interest in funds launched recently under China’s Qualified Domestic Institutional Investor QDII.L scheme, which offers residents the chance to diversify their portfolios by buying global stocks and bonds.
In May, Yinhua Fund Management Co raised just 417 million yuan for China’s seventh QDII fund from a fund-management firm, far below its $2 billion target.
One of the sources said Bank of Communications Schroders was under pressure from the securities regulator to start marketing its first fund if it wanted to secure permission to launch others later.
BusinessWeek- Lee Shyan-Yuan, one of several commissioners at Taiwan’s Financial Supervisory Commission (FSC), believes attracting hedge funds to the market would be a smart move.
He is courting hedge funds to invest in Taiwan and raise money from investors in that market. That’s a bold move from a regulator, considering that many of his peers in other markets in Asia have not yet fully embraced hedge funds; some even still consider them the enemy.
Hedge funds, after all, have been blamed—justifiably or not—at least in part for some of the difficult periods in Asia’s financial markets, most notably the regional financial crisis beginning in 1997.
