What’s the Matter With Chinese Private Equity?

September 26, 2019 | Headlines, News, Private Equity
https://dailyalts.com/wp-content/uploads/2019/09/53e4d54b4d56b114a6d98074cf213576083edbe35a58774a73277a_640.jpg

Chinese dollars have dried up this year due to macro-economic forces

Chinese private capital dealings slumped dramatically in the first half of the year. A new report from the Emerging Market Private Equity Association reveals startling figures on the state of the Chinese market.

The report shows that private capital investments slumped by nearly 33%. The market saw a decline of $15.1 billion in the first half of 2018 to $9.8 during the first six months of 2019. The number of deals also dried up. The report shows the number of deals fell to 322 to 582, year-over-year.

Private Capital Falls As “Expected”

The EMPEA said that the drop “was expected given the sheer amount of capital raised in 2018, particularly in Emerging Asia and Latin America. In addition, the group noted that this is part of a larger trend for emerging markets. The report shows respective declines in private equity and venture capital 10% and 32%, during the same periods.

The trade association attributed the slowdown to more conservative institutional investors, advisors and fund managers. The “slowdown in private capital investment activity in the first half of 2019 was more pronounced amid rising trade tensions between major economies and a more uncertain global economic outlook,” the report reads.

The 2019 Mid-Year report also tackles a number of different trends in global energy, fintech, and healthcare.

However, the decline in Chinese private capital is the gain of other regions.

“Moreover, capital invested in several geographies, including India, the Middle East, and Latin America, actually increased year over year,” the company said in a press release.

Those results aren’t surprising given a recent report from Hedge Fund Research (HFR). The company’s Q2 fund report showed that emerging markets continue to outperform U.S. equities in 2019. AUM at emerging market hedge funds hit a record $ 239.3 billion at the end of Q2 2019.

 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2020/08/og_overview-siri.png
Artificial Intelligence: Chinese Company Sues Apple For Violating Its Voice Recognition Patent
August 3, 2020     Artificial Intelligence, News

This dispute is over ten years old. According to Reuters, Shanghai Zhizhen Intelligent Network Technology Co., Ltd., also known as Xiao-I, has slapped Apple (NASDAQ: AAPL) with a $1.43 billion…

https://dailyalts.com/wp-content/uploads/2020/08/screenshot-www.curve_.com-2020.08.03-16_01_59.png
Venture Capital: UK Fintech Curve Eyeing Fundraise Between £100m and £120m
August 3, 2020     FinTech, News, Venture Capital

Sifted revealed that London-based fintech Curve may raise an amount upwards of £100 million in a proposed Series C round. It reportedly started its efforts to raise money earlier this…

https://dailyalts.com/wp-content/uploads/2020/08/internet-1862312_640.jpg
Digital Assets: Ransom Amounts Escalate Into Tens of Millions As Hacks Get Bolder
August 3, 2020     Digital Assets, News

The Twitter (NYSE: TWTR) attack gathered a lot of notoriety, mainly because it affected the accounts of so many prominent personalities. The scam garnered roughly $120,000 for its perpetrators and…

https://dailyalts.com/wp-content/uploads/2020/08/screenshot-www.mobeewave.com-2020.08.03-13_54_38.png
FinTech: Apple Acquires Mobeewave To Extend Payments Functionality
August 3, 2020     FinTech, News

Mobeewave, a Canadian tech startup that aims to convert smartphones into payment terminals, has been acquired by Apple Inc (NASDAQ: AAPL) for $100 million, according to Bloomberg. The Mobeewave startup…