(Corrects title of Xinyuan Ling to China Chairman of UBS Global
* Unit to launch funds, make investments, provide advisory
* Total capital committed to China's PE market at $652 bln
* Foreign banks, buyout funds rush to booming China PE
SHANGHAI, July 28 Swiss bank UBS said
on Thursday it has set up an asset management unit in Beijing to
tap China's rapidly growing $650 billion private equity market.
"China's strong economic growth has positioned the market as
one of the most promising emerging markets globally and resulted
in a booming domestic equity investment market," Xinyuan Ling,
China Chairman of UBS Global Asset Management, said in a
The newly established unit, UBS Global Asset Management
(China), will help launch private equity funds, make direct
private equity investments and provide other related management
and advisory services, it said.
Rivals Morgan Stanley and Goldman Sachs , as
well as global buyout firms such as Blackstone , Carlyle
and TPG , have already launched or announced
plans to set up private equity funds in China, taking advantage
of Beijing's support for the sector.
Morgan Stanley set up a China private equity unit in May,
aiming to raise 1.5 billion yuan ($230 million) in its first
yuan-denominated fund. Goldman Sachs also plans to raise up to 5
billion yuan in a China fund, a source told Reuters in May.
China is hoping that the entry of foreign expertise can
boost the domestic private equity market, so as to improve local
corporate governance and channel more money into the private
sector to aid economic growth.
Capital committed to China's private equity market totalled
$652 billion at the end of June, Ling added.
(Reporting by Samuel Shen and Kazunori Takada)