Brokerage CLSA's China asset management joint venture plans to close a 10 billion yuan (US$1.5 billion) new energy- and new materials-focused fund and begin investing around September, the chairman of its local partner said.
"We haven't finished raising funds, so I can't really say yet, but I have full confidence," Shi Derong, chairman of state-owned Shanghai Guosheng Group Co, said on Saturday when asked about the progress of fund-raising efforts.
The equally owned Shanghai-based venture, Guosheng CLSA (Shanghai) Industrial Investment Management Co Ltd, was announced last August by the two companies and will manage the fund, which will also invest in the wholesaling/retailing and heavy machinery sectors.
Private equity firms Blackstone Group LP (BX.N) and Hong Kong-based First Eastern Investment Group also unveiled plans last August for yuan-denominated funds, aiming to expand investments in China.
China has pledged to develop yuan-denominated funds to reduce companies' dependence on bank financing while aiming to build Shanghai into an international financial hub by 2020. ($1=6.828 Yuan)