CLSA to form JV to raise $1.46 bln China fund

SHANGHAI, Aug 18 (Reuters) - Brokerage CLSA will form an asset management joint-venture with Chinese state-owned investment firm Shanghai Guosheng Group Co to launch a yuan-denominated investment fund aiming to raise 10 billion yuan ($1.46 billion).

The equally owned, Shanghai-based venture, Guosheng CLSA (Shanghai) Industrial Investment Management Co Ltd, will target investments in the environment- and consumer-related, renewable energy and heavy machinery sectors, CLSA said on Tuesday.

CLSA’s announcement follows closely on the heels of First Eastern Investment Group, a Hong Kong-based private equity firm, which said on Monday it aimed to raise 6 billion yuan for yuan-denominated funds over the next 12 months to expand its investments in China. [ID:nSHA278568]

Blackstone Group LP BX.N, the world's biggest private equity firm, unveiled plans last Friday to launch a 5 billion yuan local-currency fund in partnership with the Shanghai government. [ID:nN14292761]

China has pledged since late last year to develop yuan-denominated funds to reduce firms’ dependence on bank financing.

Shanghai is competing with other Chinese cities including Tianjin and Beijing to attract foreign private equity investment as it aims to become an international financial hub by 2020. ($1=6.835 Yuan) (Reporting by Edmund Klamann; Editing by Gilbert Kreijger)