Chinese Regulators Leaves Private Equity Out in the Cold

The Wall Street Journal 29 May 2013
Private equity is the unloved child among Chinese regulators yet again.
Chinese brokerages, specifically those operating in joint partnerships with overseas entities, have been given the green light by the China Securities Regulatory Commission to diversify into other business lines, including distributing funds.
While mutual funds could be distributed, private equity vehicles are strictly no-go. It will strike a blow to some private equity fund managers that rely on private banking departments of financial institutions to help secure new pools of capital.
Jiuding Capital and SAIF Partners are some of a handful of Chinese private equity firms that research firm Z-Ben Advisors points to as having developed relationships with banks, but now must seek other methods to help with fundraising. Jiuding currently manages around $1.75 billion in assets under management, while growth investor SAIF manages $3.5 billion.
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