NewswireToday - /newswire/ -
Shenzhen, Guangdong, China, 2012/10/08 - A new proprietary research report from China First Capital titled "Private Equity in China, the Pace of Change Quickens", assesses some of the forces accelerating change in investment and capital markets in China - ChinaFirstCapital.com.
2012 is proving to be a year of rather dramatic change in China's private equity industry, characterized by: declining valuations; the slowdown in IPO approvals by China's securities regulator the CSRC; the dramatic drop in Hong Kong and US IPOs of Chinese companies; the continued expansion in the number and size of Renminbi investment funds;, the introduction of a new bond market for private companies; the first large-scale LBO of a Chinese-listed company (Focus Media).
In its latest research report, entitled "China Private Equity -- The Pace of Change Quickens", investment bank China First Capital assesses some significant trends and challenges in private equity and capital markets in China.
China First Capital's chairman, Peter Fuhrman, notes,"The report analyzes some of these larger forces influencing the flow of capital in China, including the steep fall in dollar financial investment in China, the remarkable recent success and current challenges faced by Jiuding Capital, increasing activity in domestic M&A, the sudden popularity of cornerstone investing deals. Unlike many, I remain overall positive about the fundamentals in China, above all the genius of China's millions of private entrepreneurs to create wealth and push forward positive social and economic change. "
The report can be downloaded from the "Research Reports" section of the China First Capital website.
PE investment in China, after years of high sustained growth, is slowing during the course of 2012. IPO exits have slowed as well. A marked change, according to the China First Capital report, has been a steep drop in new dollar investment in Chinese private companies. The world's largest pools of institutional capital are finding it more difficult to invest in the world's fastest-growing major economy.
Chinese companies have a huge appetite for growth capital, and can achieve high rates of return for investors. Even during a time of rapid change, the report concludes, investment in China's private entrepreneurial companies remains perhaps the best risk-adjusted investment class in the world.