China's largest private investment fund is actively looking at opportunities to set up in London. But for several reasons, any move will be done rather carefully.
China Minsheng Investment’s finance arm is eyeing opportunities to set up in London but will tread carefully while Whitehall negotiates its exit from the EU, its chief executive said, according to a report in the «Financial Times» on Monday (paywall).
CMI, the mainland’s largest private investment fund, set up China Minsheng Financial (CMF) as its Hong Kong-based finance platform last year, reversing into an existing listed trading company and appointing Sing Wang (pictured above), a veteran of TPG and Goldman Sachs, as its head.
Funded by 59 Private Sector Companies
CMI was only founded in 2014 with 50 billion renminbi ($7.5 billion) but has grown rapidly to hold 200 billion renminbi in assets. While distinct from China Minsheng Bank — China’s first private sector bank — CMI was set up by Dong Wenbiao, CMB’s former chairman, and is funded by 59 private sector companies and investors, according to the «FT».
So far, the group has branched out into property development, solar power, cross-border investment and financial leasing. Its property management arm recently bought Société Générale’s London headquarters for 84.5 million GBP.
Old-Style Merchant Banking
CMF has so far acquired broking, financing and asset management licences in Hong Kong. Sing Wang describes the model he is pursuing as old-style merchant banking, offering both investment capital and fee-generating advice.
