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China's Q3 PE investments up 89% quarter-on-quarter

By Zhang Jiawei (chinadaily.com.cn)
Updated: 2009-11-10 17:28

China's private equity (PE) investments in the third quarter of 2009 increased by 89 percent to $2.88 billion from the earlier quarter's $1.53 billion, according to data from CVSource, the online database system of investment consulting firm ChinaVenture.

The number of investments disclosed in the third quarter increased by 61.9 percent to 34 from 21 a quarter earlier, the highest since the third quarter of 2008, the CVSource's data showed.

Average investment increased 16.7 percent to $84.79 million, compared with $72.63 million in the second quarter this year.

Five of the 34 investments totaled more than $100 million, and the number of investments ranging from $30 million to $50 million increased by 166.7 percent quarter-on-quarter to eight; the number of investments ranging from $70 million to $100 million increased to four from only one in the second quarter.

Foreign PEs made 19 investments totaling $1.73 billion, up 128.7 percent quarter-on-quarter; domestic PEs' investments made 15 investments totaling $1.16 billion, up 50.1 percent quarter-on-quarter, according to the CVSource's data.

Related readings:  Domestic PE industry may touch 1 trillion yuan, experts say  PE funds rebound  China to boost share in PE pie  PE/VC companies offer helping hand to GEB suitors

The manufacturing industry topped the list of PE investments with seven worth $303.47 million. Money invested in chain-store operations was the most in all industries – four investments worth $1.2 billion, compared with $130 million in the earlier quarter.

Investments in food and beverages came to $388.68 million and totaled $330.27 million in medical care services.

Manufacturing, chain stores, food and beverages and medical care accounted for nearly 80 percent of total investments in the third quarter.

Twenty-two PE investments in firms which were already gaining profits totaled $2.56 billion, accounting for 89 percent of the total.

Beijing topped the list with five investments worth $758.38 million; Hong Kong had four investments worth $82.30 million; the Inner Mongolia autonomous region had three investments worth $357.23 million; Shanghai had three investments worth $103.05 million, the CVSource's data showed.