Challenges & Opportunities for Private Equity in China

On the Breakfast Grille, we are joined by Yong Kwek Ping. He is the CEO of Inventis Investment Holdings (China), a private equity firm based in China and one of the largest PE firms investing in the greater China region. He is a native Singaporean and a Senior Fellow of the Wharton School, University of Pennsylvania, USA.

Yong gives us an overview of the private equity market in China, and discusses some of the challenges within the Chinese market:

--  the need for thorough due diligence

--  Government controls and complex bureaucratic system in China

--  Judial independence for foreign investors vs local favouristism 

-- Corruption

-- The importance of understanding Guanxi 

 

He also discusses the investment opportunities for private equity in China:

-- There are industry sectors that have been singled out by the Chinese government, which will probably benefit from favourable government policies in the near future:

(1) Energy Saving & Environmental protection

(2) IT

(3) Bio-Tech

(4) High-end equipment manufacturing

(5) Renewable energy

(6) New materials

(7) Alternative energy vehicles