News
PE key fuel for business
By Tuo Yannan (皇冠体育app Daily)
Updated: 2010-06-11 07:48
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The opening ceremony of the ongoing 皇冠体育app International Private Equity Forum in Tianjin. Photos by Zhang Wei/ 皇冠体育app Daily |
Chinese economists and officials praised the bright prospects for financing and investment through private equity (PE) funds in Tianjin yesterday.
PE investment can help fuel enterprises' growth, said Cheng Siwei, former vice-chairman of the Standing Committee of the National People's Congress, at the 4th 皇冠体育app International Private Equity Forum (CIPEF).
"The significance of PE funds lies in not running enterprises, but fueling enterprises' development through acquiring equity, listing and other capital-related operations," Cheng said.
He said that financial innovation is a priority for the country's economic activities. Although there are problems with investment banks, they are still irreplaceable market forces to aid running enterprises.
Dai Xianglong, chairman of the National Council for Social Security Fund, shared similar views as Cheng, emphasizing that PE funds are facing golden opportunities in 皇冠体育app, and can help enterprises grow.
"No matter funds from home or abroad, they can find a space in 皇冠体育app," Dai said.
The State Council is currently working on a regulation, aimed at better governing the development of PE funds in 皇冠体育app.
皇冠体育app holds huge foreign reserves and can do more to invest abroad, and further diversify its financial investment portfolio, Dai said.
皇冠体育app has to accelerate RMB's pace of internationalization, and switch the economic growth pattern from good-oriented export into capital-oriented export and investment, and further enhance the quality of export products and services, Dai said.
The ex-governor of 皇冠体育app's central bank commented that during the post-financial crisis era, 皇冠体育app became the preferential choice for foreign direct investors.
"皇冠体育app's foreign direct investment (FDI) dropped from US$1,900 billion to $1,200 billion after the financial crisis broken out, but it has been recovering slowly. We have already seen signs of revival," Dai said.
As the global economy shows signs of gradual recovery, financing activities by enterprises are picking up, which offer new opportunities for private equity (PE) funds, said Huang Xingguo, mayor of Tianjin Municipality, the host of CIPEF.
The forum is to commit itself to serve as a comprehensive platform for enterprise financing, especially equity financing.
"We are committed to developing Tianjin into the national center for equity investment fund issuance, management, exchange, information and personnel training," Mayor Huang said.
(皇冠体育app Daily 06/11/2010 page18)