The Rise of the Blue Collar Consumer
The Chinese economy give labor leverage – in other words, rising wages. This is resulting in a visible redistribution of wealth and an increasing number of blue-collar consumers entering the marketplace. The One Child policy has begun to take its toll on China’s labor force. Although China’s population has remained relatively stable – 1.36 billion […]
Dark Ages or Renaissance for China PE?
China’s private equity market is either going through the dark ages or a renaissance, depending on whom you ask, with advocates for both sides represented at the HKVCA China Private Equity Summit this week in Hong Kong. The deceleration of China’s economic growth and bottleneck in IPOs for mainland companies has had a knock-on effect […]
Fraud in China ‘Too Hard’ to Detect
Discovering fraud in potential investee companies is becoming more difficult, meaning many China GPs are steering clear of take-private deals, delegates heard at the HKVCA China Summit 2013. A panel of private equity investment professionals offered words of caution over the privatisation of Chinese businesses from stock exchanges globally at the 12th China Summit organised […]
Safety First: Investing in China’s Food Supply Chain
Driven by rising disposable incomes and lower confidence in food safety, Chinese consumers are willing to pay a premium for quality. PE firms have identified the opportunity, but taking it can be difficult. Fifteen years ago, Charles Shao left his career as a technology investor in the US and returned to China to set up […]
For Private Equity, Door to Deals Opens in China
Private-equity investors, long shut out from getting controlling stakes in Chinese companies, are beginning to find mainland entrepreneurs increasingly amenable to outside help. These “first-generation entrepreneurs” — people who took advantage of the liberalization of China’s economy starting in the late 1970s — began their operations on a small scale, with modest amounts of capital. […]
Change Afoot for Investors in China’s Retail Sector
As the economy slows and midtier brands lose favor with consumers who are switching to premium brands and to shopping online, China's retail sector is changing. The result is that private-equity firms that once bet on sky-high consumer growth are now buying into restructuring situations or into companies that cater to more-sophisticated tastes. “Going from […]
Despite Scandals, PE Still Has Appetite for Chinese Food and Beverage Deals
Investors in China are literally putting their money where their mouths are. Capital invested by financial sponsors in China’s food and beverage sector rose by almost 10% last year, as the industry continues to consolidate and demand for higher quality goods prompts a need for stronger company operations. Although other sub-sectors catering to Chinese consumers, […]
Asia Private Equity Weekly News, April 29, 2013
HONG KONG, Apr 29 (Reuters) – News and developments in Asia private equity from Reuters News for the week ending April 26. TPG CAPITAL is putting China's UniTrust Finance & Leasing Corp up for sale, seeking $800 million, and has hired Morgan Stanley and UBS to handle the deal, people with knowledge of the matter […]
Lunar Invests in Chinese Beef Snack Company
Shanghai private equity firm Lunar Capital has bought a majority stake of about 70% in Chinese snack food maker Guizhou Yonghong Food Co., committing up to $50 million to the company. The deal represents one of a handful of Chinese buyouts in a market where private equity investors typically take minority shareholdings in portfolio companies. […]
Private Enterprises and Debt Markets in China
One of the biggest challenges for small- and medium-sized private enterprises in China is debt financing. A recent study conducted by Development Research Center under the State Council showed that while 66.7% of the SME see bank loans as the primary source of financing, more than 62% of the SMEs are unable to acquire them, […]
