HSBC Asia again backs Chinese supermarket chain

The Hong Kong-based firm injected $35m in a second tranche of funding, upping its stake in YongHui Group to 24 percent.

HSBC Private Equity Asia has invested $35 million in Fujian-based supermarket chain YongHui Group in its second round of funding, according to YongHui Group.

This increases the firm’s interest in YongHui to 24 percent, after an initial funding of $40 million in August 2007.

Established in 1998, the Fujian-based company has 79 supermarkets in Fujian, 40 in Chongqing and is planning to open five in Beijing by the end of 2009.

“We are set to open two supermarkets in Beijing, by the end of this year or early 2009,” a spokesman from YongHui said.

The investment was made out of HSBC Private Equity Fund III which is fully invested, according to William Shen, who heads the firm’s Greater China team.

A week earlier, the firm closed its sixth fund on $1.47 billion, double its predecessor which closed on $700 million in 2004. Parent affiliate HSBC was a major investor in Fund VI.