BEIJING, March 5 (Xinhua) -- Around 73.68 percent of private equity (PE) firms polled in a survey expressed optimism over the business opportunities from the ongoing private placement boom in China, reported Xinhua Finance, a financial news platform run by Xinhua News Agency Wednesday.
Contrary to the remaining 26.32 percent of peers polled by Simuwang.com, a wealth management services portal, they thought the current private placement boom by Chinese listed companies would bring sound opportunities for them to better investment performance.
By March 2, 70-plus Chinese listed companies announced their private placement plans and part of public fund firms and PE firms rushed to subscribe in large amounts.
In mid February, Hillhouse Capital Management Limited - HCM China Fund subscribed solely about 2.3 billion yuan of private placements by Asymchem Laboratories (Tianjin) Co., Ltd. (002821.SZ), a pharmaceutical outsourcing firm, at a price of 123.56 yuan per share.
Chen Yanli, a partner of Co-Stone Asset Management Co., Ltd., a Shenzhen-headquartered PE company, attributed the market enthusiasm to revived confidence and reactivated private placement market after China's newly revised Securities Law loosened requirements for private placement.
Currently, it is a perfect time for China's listed firms to carry out private placements, which are likely to balloon this year when investors are more willingly to take part in, Chen said. (Edited by Duan Jing, duanjing@xinhua.org)
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