The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

New fund taps Euro-China relations

Tourism, travel and manufacturing are the targets of investment worth up to HK$15 billion.

The growing importance of China's relationship with Europe, already China's largest trading partner, is the driving philosophy behind a new fund launch.

Based in Hong Kong and Beijing, the Euro-China Fund is being launched by limited partners Siemens, BASF, Zurich Insurance Company, Mannheim LLC and general partner First Eastern Investment Group, a leading domestic private-equity group in China.

The fund is targeting a close at the end of 2005 and a minimum capital commitment of €100 million.

That might seem modest given the size of China's economy, but Victor Chu, chairman of First Eastern Investment Group, believes given correct structuring and leverage, the capital is more than sufficient.

"It is a HK$1 billion fund," he says, "and will typically co-invest between 20% and 25% per project, so that's a five-time multiplier.

"Plus for every dollar of equity, we can add three dollars of debt. It gives us the capacity to invest up to HK$15 billion (US$1.9 billion). And First Eastern has a further US$400 million of capital and the likes of BASF and Siemens have very deep pockets."

The fund is aiming to invest in business areas that involve growing trade and investment flows between Europe and China as well as opportunities that help European and Chinese businesses work more efficiently together through market access, technology transfer and/or strategic alliances.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree