The newly formed Government of Pudong New Area has signed a memorandum of understanding with The Blackstone Group, which will establish its first regional Renminbi denominated private e
The newly formed Government of Pudong New Area has signed a memorandum of understanding with The Blackstone Group, which will establish its first regional Renminbi denominated private equity fund in the Shanghai Pudong New Area.
The Blackstone Zhonghua Development Investment Fund will raise approximately RMB5bn. The fund will give priority to investments in Shanghai and neighbouring areas.
Lin Xu, standing member of the Shanghai Party Committee and Party Secretary of Pudong New Area, says: ‘The Blackstone Group is the largest publicly listed alternative asset management company in the world, possessing extensive investment management expertise and world class risk control capabilities. The selection of Pudong New Area as its partner in the establishment of the Blackstone Zhonghua Development Investment Fund clearly demonstrates Blackstone and its Greater China team’s support and confidence in the future development of Pudong. In addition, Blackstone’s presence will both contribute to Pudong’s effort in developing an international finance centre and shipping centre in Shanghai and play a significant role, as a financial service provider, in encouraging economic transformation in and upgrading industrial capabilities of Pudong.’
Liang Jiang, deputy secretary general of the Shanghai City Party Committee, Deputy Party Secretary and Governor of Pudong New Area, and Antony Leung, senior managing director and Blackstone’s chairman for Greater China, jointly signed the memorandum of understanding.
Leung says the fund is Blackstone’s first regional Renminbi denominated private equity fund, reflecting the emphasis placed by Blackstone on the Chinese market.
Since the State Council published its opinion in April 2009 on the promotion of the twin-track plan to develop Shanghai into an international finance centre and a shipping centre and Shanghai convened a meeting on implementing the opinion, Pudong has acted swiftly and published the ‘Implementation Opinion on the Facilitation of the Development of the Pudong New Area as the Hub of Shanghai as an International Finance Centre’, which clearly stated Pudong’s plans and objectives. As the hub of Shanghai’s financial activities, Pudong places great emphasis on the financing capabilities of equity investment enterprises, and has introduced policies to domestic equity investment enterprises and foreign equity investment management enterprises to encourage the establishment of such entities in Pudong.
