SHANGHAI, August 21The former chairman of China
Minsheng Banking Corp Ltd , one of the
country's top private lenders, launched China's largest private
investment fund on Thursday.
Dong Wenbiao, who resigned from Minsheng on Monday as a
result of what he described as job changes, launched China
Minsheng Investment Co Ltd with a registered capital of 50
billion yuan ($8.13 billion) after raising funds from 59
domestic private enterprises.
"This is the largest fund of its type," said Chen Xingyu, a
Shanghai-based banks analyst at Phillip Securities (Hong Kong)
Shareholders of the fund, which received State Council
approval in April, are all large private firms and include
Suning Commerce Group, one of China's largest electronic
appliance retailers, and Baota Petrochemical Group, a leading
Other investors hail from the manufacturing, metallurgy,
e-commerce sectors, among others, and together own assets of
nearly 1 trillion yuan.
The fund, which is one of a handful of national-level
investment companies, will invest in photovoltaic power
generation projects, steel and vessels, and will also engage in
stock management and consultancy services, according to a press
release circulated at the launch event on Thursday.
The fund is also licensed to conduct outbound investment and
the disposal of non performing assets. It is unclear whether the
fund will be handling non-performing loans from Minsheng Bank.
While there is no legal relationship between Minsheng Bank
and the fund, many of the owners of the fund are ex-Minsheng
Bank executives, so there is likely to be a co-operative
relationship between the two entities, said Chen.
It is unclear why Minsheng Investment is using the Minsheng
($1 = 6.1522 Chinese yuan)
(Reporting by Engen Tham and Sharon Xu; Editing by Matthew
Miller and Matt Driskill)