On June 5, 2009, with the approval of the China Securities Regulatory Commission, Shenzhen Stock Exchange formally released the Growth Enterprise Board Rules of Shenzhen Stock Exchange ("Growth Enterprise Board Rules"), paving the way for small and private companies to raise funds publicly, something authorities had been promising for several years.Continue Reading Stricter Disclosure Requirements In The Growth Enterprise Board Rules
The Wall Street Journal reports that "Leveraged finance is down 82% this year, while announced M&A is down 64% and fee income from private-equity firms is down 74%, according to data from Dealogic and Banc of America Securities analyst Michael Hecht."
Private equity and venture capital deals have screeched to a halt, with no clear signs of improvement.Continue Reading Let’s Face It – Business Is Not As Usual
It is always dangerous to try to make long-term forecasts during volatile times – and there hasn’t been a more volatile time in the Chinese private equity and venture capital market since it began opening to foreign investment in the last decades than that of the last several months.Continue Reading Return to Direct, Onshore PRC Investments
So you’ve heard of the global recession. What are you doing about it? It’s not really an unusual question—your PE and VC colleagues are asking the same thing and waiting for someone else to answer it. Most have sat on the sidelines to see when others will jump into the market and start putting money to work. Given the highly uncertain outlook for the immediate future, Chinese PEs and VCs are understandably anxious about their survival and potential for growth against the backdrop of the economical meltdown.Continue Reading Survival and Growth of Chinese PEs and VCs
Most private equity (PE) firms in the Western PE industry are organized as limited partnerships or limited liability companies. Therefore, since the time that China’s Partnership Enterprise Law ("new Partnership Law") was amended in 2007, China’s domestic PE funds have established a large number of limited partnerships.Continue Reading Private Equity Funds Formed as Limited Partnerships to Exit via IPO in China Blocked
Through regulations and directives in 2006 and 2007, Chinese authorities have adopted a restrictive stance towards foreign investment in real estate. Foreign enterprises investing in Chinese real estate are required to incorporate in China. In addition to the usual approval requirements for foreign enterprises, foreign-invested real estate enterprises (FIREs) are subject to the following restrictions:Continue Reading Foreign-Invested Real Estate Enterprises