Celebration of a strong 2016

This Chinese New Year, we celebrate the 15th anniversary of China’s accession to the World Trade Organization. GDP per capita now exceeds US$8,500, up from US$1,200 in 2001, and the World Bank classifies China as a middle-high income society. Morgan Stanley believes China will achieve high-income status by 2027, yet China only ranks as the […]

The crystal ball: Predictions for 2017

From LPs looking for realizations from GPs as well as paper gains, to the factors contributing to more buyout opportunities in China, industry participants give their perspectives on the year to come: BRIAN LIM, PARTNER AT PANTHEON, ON THE LP PERSPECTIVE: Sentiment has been more subdued on Asia. You will see some fundraising noise that […]

Chinese SMEs Positioned for Growth


During our most recent Annual General Meeting, Lunar Capital Partner Robin Song led a group of investors to meet with the Chinese Association of Small-Medium Sized Enterprises (CASME) in Beijing to learn how public and private financing is helping small-medium sized enterprises move up the value chain to become listed enterprises on China’s domestic stock […]

Consumption Leading to a More Positive Experience with Family

As China addresses the sustainability of high growth rates and economic rebalancing away from export-and manufacturing-led growth, outlook for domestic consumers continues to grow increasingly positive as disposable incomes rise and unemployment remains low. China’s middle class, now more than 200 million, can afford basic necessities and are pursuing premium products and a well-balanced lifestyle […]

Consumer Brands Are Creatively Communicating Through Modern Media

As China transitions towards consumption, brands are aggressively positioning marketing budgets towards modern media. Across the board, spending on new forms of media increased from 20% of marketing budgets in 2012 to 43% in 2015, and is expected to reach 60% in 2016. Modern media refers to content made available on the internet and mobile […]

China’s Family Businesses Sell Out to Private Equity

After spending half his lifetime building the family snack food company in the eastern Chinese city of Hangzhou, Yao Weizhong had run out of steam. His 22-year-old son showed little interest in the business, and Yao needed fresh capital and expertise to keep it growing. So Yao, 48, chose a path taken by a growing […]

Role of Chinese Private Equity in a Complex Environment

During the fourth quarter of 2015 and into the first quarter of 2016 as our teams assembled this report, Chinese capital markets were extremely volatile, with most equity-focused hedge and long-only funds reporting being down double digits. Despite these worries, we remain of the view that 2016 is starting out in a very similar fashion […]

The Design of Intelligent Cities are Changing Consumption in China

Multi-faceted efforts are being made to transition China’s economy from a reliance on fixed-asset investment to that of market-driven consumption. As announced with China’s 13th Five-Year plan, civil engineers are designing and developing “Smart Cities”. Under this plan, local and national governments are making targeted efforts to address urban resource shortages, pollution, traffic congestion and […]

PEI Outlook 2016: China’s year of the Mid-market

In its World Economic Outlook 2016, the International Monetary Fund projects a slowdown in growth in China from 6.8 percent in 2015 to 6.3 percent next year – much lower than envisaged at the start of 2015. However, the government’s attempts to improve the quality of growth through structural reform and its nurturing of a […]

Dining out

By Tim Burroughs Various PE firms have found success supporting Taiwan consumer brands in mainland China. But the food and beverage segment is an example of how picking the team, theme and time can make all the difference Starting from a single store in Taipei in the 1970s, restaurant chain Din Tai Fung has taken […]