Private Equity in China. The struggle for China's private equity market supremacy between foreign and domestic market participants

Private Equity in China. The struggle for China's private equity market supremacy between foreign and domestic market participants PDF

Author: Johannes Gmeiner

Publisher: GRIN Verlag

Published: 2018-09-04

Total Pages: 30

ISBN-13: 3668790191

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Seminar paper from the year 2016 in the subject Economics - International Economic Relations, grade: 1,3, University of Würzburg, language: English, abstract: 2014 has been a year for the record books concerning private equity. Global investment exits through initial public offerings accumulated two trillion US dollar and about 500 billion US dollar have been collected in private equity funds for future investments. These impressive numbers show how important private equity has become in the international financial sector and China has evolved to one of the biggest private equity markets in the world. This raises the question of who is in power in the Chinese market? Giants like Goldman Sachs, Blackstone or Carlyle dominate the international market. So how are the domestic Chinese private equity firms doing? When China first heard of private equity in the early-1990s, it was already one of the biggest investment markets in the West, mainly in America. Hence, American companies had nearly no competitors in China and made fortunes in this recently opened market. Nevertheless, domestic firms developed quickly and challenged foreign companies to a duel. This paper will be divided into two parts, firstly it will show the development of Chinese and foreign private equity companies and their shares on the Chinese market. The second part then will try to give an impression on possible reasons for the mentioned development. There won’t be any further explanations about private equity given in this paper, only if they are needed for deeper understanding of the context. However specific knowledge about private equity will not be needed since it won’t discuss specific features of it in detail. The aim of this paper is to answer the questions about how the market developed and the possible reasons for this.

Private Equity in China

Private Equity in China PDF

Author: Kwek Ping Yong

Publisher: John Wiley & Sons

Published: 2012-01-12

Total Pages: 326

ISBN-13: 0470826541

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Learn valuable lessons from the newly successful private equity players in China and explore the challenges and opportunities offered in Chinese markets The first book to deal with private equity finance in China, Private Equity in China: Challenges and Opportunities provides much-needed guidance on an investment concept that has so far proved elusive in Asia. Focusing on the opportunities that the Chinese finance market offers to private equity firms, the book shows how these firms can strategically position themselves in order to maximize success in this new marketplace. Private Equity in China includes in-depth case studies illustrating both successful and failed ventures by private equity firms operating in China, outlining the challenges faced by private equity firms in setting up new funds. It contains a collection of valuable experience and insights about acquiring companies and turning them around essential for any firm currently operating in, or considering entering, the Chinese market. Discusses the challenges faced by private equity firms in China including setting up the initial fund, fund raising, deal sourcing, deal execution, and monitoring and exit strategies Provides key insights drawn from keen observations and knowledge of the more mature private equity market in Western countries, analyzing the way forward for the Chinese private equity industry Discusses the role of renminbi-denominated funds in the development of the private equity industry in China Breaking new ground in exploring and explaining the private equity market in China, the book offers incredible new insight into how equity companies can thrive in the Chinese marketplace.

Private Equity Funds in China

Private Equity Funds in China PDF

Author: Bin Xia

Publisher: Enrich Professional Publishing

Published: 2014

Total Pages: 0

ISBN-13: 9781623200077

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Private Equity Funds in China serves as the definitive resource on understanding and navigating China's private funds market, explains the ups-and-downs of China's private funds market, and reveals; The inner workings of China's private securities and non-securities investment funds. The intricacies of China's "sunshine" private funds. The progression of China's venture capital funds. With comprehensive data and statistics, as well as inside information, Chief Editor Xia Bin, the Counselor of the State Council, presents policy recommendations which could potentially change China's equity funds sector, and even the asset management market.

The Private Equity Limited Partnership in China

The Private Equity Limited Partnership in China PDF

Author: Lin Lin

Publisher:

Published: 2013

Total Pages: 33

ISBN-13:

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Although current academic thinking tells us that private equity investors are generally passive in the management of funds, Chinese private equity market is dominated by funds whose investors are relatively active. The interference of limited partners in a fund's management triggers internal conflicts between partners. This article examines the legal and practical reasons for this phenomenon. Based on extensive interviews with market participants, it is found that the agency problems, the legal weaknesses of limited partners under Chinese law and several regulatory constraints on China's private equity industry have influenced the decisions of investors to pursue active strategies in funds. This article also examines the effectiveness of the control rule and a few of the common private contractual arrangements in addressing the agency problem in the context of Chinese private equity funds, and suggests strategies to mitigate the problem.

China's Private Equity Market

China's Private Equity Market PDF

Author: Takeshi Jingu

Publisher:

Published: 2008

Total Pages: 16

ISBN-13:

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China's private equity market has been growing mainly as a result of recent reforms, with investments totaling US$14.46 billion in 2006. Institutional investors from around the globe have responded by increasing their investments in Chinese private equity. These investments are vulnerable to actions taken by the government, however, and regulatory trends bear close watching.

International Private Equity

International Private Equity PDF

Author: Christian Loelke

Publisher:

Published: 2009

Total Pages:

ISBN-13:

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The study at hand developed a framework to analyze the development stage and attractivity of private equity (PE) markets for international private equity firms. Once, this framework was developed, it was applied to analyze the Chinese PE market. This country analysis revealed great potential for cross-border PE investments in China. First, this potential derives from an increasing demand for PE, since China's communist heritage and short history of private enterprises led to a lack of equity capital and a need for Western business expertise. Second, China offers an increasing supply of deal opportunities, foremost due to the privatization of state-owned enterprises. The framework also highlighted the high risks and uncertainties that are involved with PE investments in China. These risks originate from underdeveloped institutions, such as an inefficient banking system and stock markets, insufficient market regulations, and low investor protection. This study comes to the conclusion that international PE firms in China might initially yield a lower return on their investments compared to mature markets. However, as the PE market continues to evolve, international PE firms should consider investing a fraction of their portfolio in China to get accustomed to the Chinese business context and be prepared once the market becomes more developed and finally profitable.

Digital Transformation of Private Equity in China

Digital Transformation of Private Equity in China PDF

Author: Ruihui Xu

Publisher: Springer

Published: 2024-01-31

Total Pages: 0

ISBN-13: 9789819984817

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This book studies and discusses the current situation and development trend of technology application in the private equity industry of China. This book provides answers to the following questions that are critical concerns of the industry. For applications of technologies in enhancing financial service quality and efficiency, how to introduce digital technologies into the business innovation and operation management process of the private equity industry? How can digital technology be used to promote the comprehensive digital transformation of the private equity industry? For regulation of the private equity industry, how to utilize digital technology to improve the regulatory means and tools of the private equity industry. How to use digital technology to prevent the risk of the private equity industry? The answers to the questions have theoretical significance and practical value for healthy development and supervision of private equity industry in China. China’s private equity industry has made significant progress and attained remarkable achievements after more than 30 years of development, especially with the advancement of China’s capital market reform. This book provides an overview of the private equity industry and a study of digital technology applications such as the Internet, big data, artificial intelligence, and blockchain. It is a valuable reference for researchers and practitioners in related fields, and it also sheds light on technology applications for practitioners and financial regulators in the private equity industry in China.

The Private Equity Funds in China: A 20-Year Overview

The Private Equity Funds in China: A 20-Year Overview PDF

Author: Executive Director Bin Xia

Publisher:

Published: 2014-05-14

Total Pages: 389

ISBN-13: 9781623200558

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Vol.1 studies the diversification of China's asset management industry; and analyzes the private securities funds and private equity funds in China; finally, the book covers the development of China's private funds and the exploration of "Sunshine" private funds. Vol.2 explains the regulatory systems of China's private funds; and also China's private equity investment enterprises; additionally, the book presents the structure and performance of China's private equity funds and its non-securities private investment funds

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