Hong Kong-based China Everbright Limited held a $264 million first close on its CEL Global Investment Fund with the plan to invest in US and European companies targeting China, as reported by Private Equity International.
According to PEI data, the share of China-focused capital raised by overseas fund managers increased from 2012 to 2015, followed by a significant fall in the first eight months of this year.
However, that seems likely to change. The China Securities Regulatory Commission has announced plans to allow foreign enterprises to raise money from domestic investors and strengthen their foothold in Chinese capital markets. It is part of a bigger move by Chinese regulators to give foreign firms greater access to its financial markets.
Funds launched in 2016, such as Warburg Pincus’s Private Equity China Fund and Hong Kong-based CITIC Capital’s China Partners III, targeting $2 billion and $1.5 billion respectively, suggest that the new regulations are already taking effect.