China's PE investment scale hits 100 bln USD

China's private equity investment scale has hit more than 100 billion US dollars. The Global Private Equity forum could see a lot of Chinese capital.

Private equity, or PE investment, involves collecting capital from private investors. This means investing in non-listed companies and earning profits by selling shares. More capital has been attracted to PE investment on the back of fast development. This includes China Social Security Funds Investment.

Shao Bingren, Director of Preparation Team, China Private Equity Association said "Among the first batch of 28 listed companies on the GEM board, 23 companies have received investment from PE institutions."

China's PE institutions include investment and start-up companies. Chinese investment company, Hony Capital, has undergone rapid growth in recent years. This included investing 100 million US dollars in intervening a company's restructure and bidding for shares in China's fourth-largest insurer, TaiKang Insurance.

Zhao Linghuan, President of Hony Capital said "Recently, we have doubled the number of our employees. We have a big yuan-dominated fund which supports social security funds, the Lenovo company and big dollar-dominated funds. We have nearly 18 billion yuan which needs to be invested during the next two to three years."

Experts said the China's private equity investment scale is expected to grow from 200 billion to 300 billion US dollars. They predict PE investment will bolster the growth of the financing scale in the near future.