China Select to set up RMB funds

Canada-based China Select Capital Partners has received approval from the municipal government of Suzhou Industrial Park to set up funds denominated in the Chinese currency.

China Select Capital Partners, a Vancouver-headquartered asset management and investment firm, has received approval from the Suzhou Industrial Park municipal government to manage RMB-denominated private equity funds as an onshore fund management company.

“China Select is one of the first Canadian firms to be granted a license to manage RMB-denominated private equity funds in China,” Joseph Fodor, chief executive officer of China Select, said in a statement. The firm will establish RMB-denominated private equity funds alongside domestic joint venture partners in China, he added.

The approval follows the new rules signed-off by the Chinese government in relation to foreign-invested partnerships and the establishment of foreign investment companies and joint venture domestic investment management companies on 1 March, the firm said. 

The new rules allow foreign-invested onshore management entities and onshore private equity investment entities to be incorporated in major Chinese localities, the firm said, thus allowing foreign investors the opportunity to invest in RMB in domestic investment opportunities previously unavailable to them. 

China Select Capital Partners will focus its efforts on late stage investments in both listed and unlisted companies in sectors such as renewable energy and environmental technology. The firm said it will identify exit strategies through mergers and acquisitions and initial public offerings in both China and North America.

The firm has made one investment in China, in Dongxiang, a company primarily engaged in the design, development, marketing and wholesaling of branded sportswear in China.