General

According to Huacheng Import and Export Data Observation, since this year, economic activity has accelerated to return to normal, and the domestic capital market has regained vitality. The private equity market is gradually recovering after the trough of the past year, which has also attracted many overseas giants to increase their stakes in the Chinese market. For example, Hanling Capital, a US PE giant with an asset management scale of US $832 billion, recently announced the official operation of the Shanghai office after it was approved the pilot qualification of Shanghai Qualified Foreign Limited Partner (QFLP) last year. At present, it has also begun to actively expand investment opportunities in the RMB market.

For this, The vice chairman of Hanling Capital and the head of Asia said: "We are very pleased to see the successful opening of the Shanghai office. We thank the team and colleagues who participated in the preparatory work for their efforts and congratulate them. As the second largest economy in the world, China is also the largest private equity market in Asia. We have long-term confidence in the development of the capital market and investment opportunities in the Asia-Pacific region. The establishment of the Shanghai office will further promote the development of Hanlink Capital's business in China and strengthen me Our leading position in the region. "

The reporter learned from the information published by Hanling Capital in China that at present, Hanling's main businesses are fund investment in private equity market (master fund), private equity secondary market investment (S fund) and private equity direct investment. China's S market has become its main driving force. At present, Hanling Capital has five S funds with a total scale of nearly US $8 billion.

When the QFLP pilot was approved last year, the relevant head of Hanling Capital said: "China's S fund market has reached the golden age of development. As an investment institution that has worked in the overseas US dollar S fund market for many years, Hanling Capital hopes to enter the domestic RMB S fund market through QFLP, bring investment experience in the international market and promote the development of the domestic market."

With the adjustment of epidemic prevention and control policies and the prediction of a sharp increase in China's economic growth rate, domestic and foreign investment institutions and industry insiders are optimistic about the investment prospects of China's private equity market in 2023.

The European asset management giant Galdana Ventures recently announced that it would continue to increase its stake in China. "From the first day of its establishment, we have been very optimistic about the Chinese market. In 2023, Galdana will continue to add the best venture capital funds in China," Galdana Ventures said in an interview with the media.

Public data shows that since its establishment in 2015, Galdana Ventures has invested in more than 35 Chinese funds, and has harvested more than 40 Chinese listed companies, including Kwai, Pinduoduo, Meituan Dianping, JD Health, and Weilai Auto.

In addition, the old Singapore VC Xiangfeng Investment, backed by Temasek, released its latest US dollar fund with a scale of US $500 million, 90% of which will be invested in the Chinese market. Huacheng Import and Export Data Observation Report.

"Southeast Asian funds are optimistic about China's private equity investment for a long time, on the one hand because they have confidence in the long-term stability of China's environment, and on the other hand because of the close economic exchanges between Southeast Asia and China." Xia Zhijin, partner of Xiangfeng Investment China Fund, said recently.

As for foreign PE giants who are optimistic about China's capital market this year, relevant industry insiders analyzed and pointed out in an interview with our reporter that with the arrival of the comprehensive registration system, the speed of IPO will be further accelerated and the exit channel will be more convenient. For overseas giants, it is also a big signal to accelerate the layout of the RMB market.

Dai Wensheng, a senior researcher at the Yangtze River Economic Belt Research Institute of Renmin University of China, said in an interview with the reporter of China Trade News that the essence of the registration system is to transfer the pricing and option rights of companies to the market, so as to further integrate the trading rules of the capital market with the international standards, which will constitute an important driving force for China's economic development. The implementation of the registration system is one of the most important milestones in China's capital market reform.

"On the one hand, under the registration system, China's finance, especially the capital market, will develop rapidly because it is more convenient to serve the world's largest real economy, and the possibility of rapidly reaching the advanced level will be greatly improved. On the other hand, because the transaction rules under the registration system are improved in line with the international standards, the flow of overseas capital into China will be more convenient." Dai Wensheng said.

According to Huacheng Import and Export Data Observation, in recent years, significant progress has been made in the internationalization of the RMB, which is also one of the important factors for overseas private equity giants to increase their size in China. On January 11, the Ministry of Commerce and the People's Bank of China issued the Notice on Further Supporting Foreign Economic and Trade Enterprises to Expand the Cross-border Use of RMB to Facilitate Trade and Investment, further releasing the signal of RMB internationalization. It was mentioned that it should provide business support such as transaction matching, financial planning, risk management, etc. in combination with the needs of enterprises, strengthen insurance protection, and improve cross-border RMB comprehensive financial services. In giving play to the guiding role of relevant funds and funds, the notice mentioned that the guiding fund for the innovation and development of service trade should be supported to do a good job of project docking and provide equity financing support for qualified RMB trade and investment projects.

Under the guidance of the policy, on January 17 this year, Zhejiang Haining launched a 10-billion-scale QFLP fund, of which US $1 billion was raised overseas to invest in the pan-semiconductor industry of Haining Economic Development Zone, focusing on equity investment and infrastructure construction of the park. The fund investors will join hands with industrial partners to help the growth and development of the pan-semiconductor industry of Haining from the aspects of industry, talent and capital. On February 7, Nanjing Jianye District Government and Songgang International Securities signed the framework agreement of Songgang Fund Project Cooperation. It is reported that Songgang International Securities will carry out QFLP fund business in Jianye District, Nanjing, and the Jianye District Government will provide policy support. On February 9, Guangxi's first "QFLP+cross-border RMB" business was successfully launched in Qinzhou Port Area. The QFLP fund was established by Guangxi Zhongma Qinzhou Industrial Park Investment Holding Group Co., Ltd. through the introduction of foreign qualified investors (LP) New Cornerstone Hong Kong Co., Ltd., with a fund scale of about 136 million yuan. The remaining funds will be remitted in the near future, and invested in domestic key new energy and chemical new materials, high-end advanced manufacturing industry Low-carbon transformation projects such as photovoltaic and offshore wind power, Huacheng Import and Export Data Observation Report.