Report: CCBI to launch six RMB funds in 2010

The Hong Kong-based firm plans to launch a $1bn fund focused on financial services in addition to the RMB funds.

CCB International (CCBI), the investment arm of Chinese commercial bank China Construction Bank, intends to launch six RMB-denominated private equity funds to manage more than RMB10 billion ($1.5 billion; €995 million) in 2010, according to Reuters.

CCBI did not reply to requests for comment at press time.

The RMB funds will focus on sectors including environmental protection and healthcare, with two funds each focused on cultural and media businesses and green businesses to be launched later this month, Xu Xiaolin, a managing director at CCB International Wealth Management, reportedly said at a conference in Shanghai.

CCBI will also launch a $1 billion financial sector-focused private equity fund, Hu Zhanghong, the firm’s chief executive, is said to have stated at the same conference. The fund intends to acquire a 15 percent stake in the Bank of Shanghai and is in talks to acquire another stake in the Huatai Insurance Company of China, Reuters noted.

Hong Kong-based CCBI is currently investing out of CCBI Healthcare Fund, its first fund denominated in RMB and also China’s first healthcare-focused fund.

Investors in the fund so far include Beijing-based hydroelectric company China Yangtze Power and investment firm China Jianyin Investment. The fund has raised RMB2.6 billion and is targeting commitments of RMB5 billion, according to media reports.

The healthcare fund made its maiden investment in September when it acquired an undisclosed stake in Jiangyin Lanling Rubber Stopper Company for RMB100 million. It primarily makes pre-IPO investments in the pharmaceutical products manufacturing, medical devices providers, medical institutions, medical services providers and healthcare management sectors.

CCBI International Asset Management (Tianjin) is the platform for CCBI’s RMB-denominated private equity business, according to the firm’s website.