BEIJING, Oct. 13, 2009 (Xinhua News Agency) -- Beijing would soon unveil favorable policies for foreign funded private equity (PE) firms in the municipality, said Xie Jianhua, deputy director of Beijing Municipal Financial Bureau.
Famous PE firms, including Carlyle and Kohlberg Kravis Roberts & Co. (NYSE:KKR) (KKR), are expected to register their businesses in Beijing, he disclosed.
The financial bureau has formulated a "1+3+N" mode for foreign-funded PEs in Beijing. Zhan Long, an official with the bureau, outlined what this means. Beijing municipal government will first set up a government-guided fund with total capital of 10 billion yuan. After that, three industrial investment funds will be set up under the government-guided fund, targeting the technology, green and cultural innovation fields. Finally, the government will cooperate with outstanding foreign-funded PE management companies to establish several equity investment funds.
Beijing municipal government will provide PE firms with financial advantages and convenience in business registration to attract foreign investors to set up companies in the city.
According to statistics released by the Beijing Private Equity Association, Beijing received 184 cases of equity investments and venture capital investments in 2008, accounting for 24.2 percent of China's total. The investment volume reached 3.44 billion US dollars, taking up 24.9 percent of the total, and ranking Beijing the first in the country.
In the first half of 2009, 44 such investment cases went to companies in Beijing, taking a 23.91 percent stake of China's total. The volume hit 5.14 billion US dollars.
