Hong Kong-based Guoyuan Asset Management intends to raise a $300 million private equity fund, according to media reports.
Guoyuan Asset Management declined to comment.
The sector agnostic fund will invest in Chinese companies, which are aiming to list in two or three years. The fund will raise capital primarily from mainland investors and is targeting a return of 25 percent, the reports said.
Chinese fundraising in the first quarter of 2009 has declined 97 percent compared to the corresponding period in 2008, according to Zero2IPO Research Centre, a Chinese venture capital and private equity service provider.
In the first three months of 2009, two private equity funds for investment in China raised $500 million. No RMB-denominated funds completed fundraising, and some of them extended their fundraising periods, the study said.
Guoyuan Asset Management is a subsidiary of Chinese securities firm Guoyuan Securities. Guoyuan Securities made RMB130 million in net profit, attributable to parent company Guoyuan Holdings, in the first quarter of 2009. This was a 32 percent increase from the same period in 2008.
Founded in 2001, Guoyuan Securities is headquartered in Hefei and has 35 branches across China in cities including Anhui, Beijing, Shanghai, Guangdong, Shandong, Liaoning, Tianjin, Jiangsu and Zhejiang.