Ex-China AMC fund manager registers PE vehicle in Qianhai

Yawei Wang, who earned a reputation as one of China's best stock pickers, applied to Shenzhen's Market Supervision Administration to set up Shenzhen Qianhe Capital Management in Qianhai.

Wang spent 14 years at CAMC, which became a subsidiary of CITIC Securities in 2007, before leaving the firm in April. One fund he managed secured a return on investment of 890% between 2006 and 2011, according to Wind Information. Retail investors tracked his every move, making copycat orders.

The Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone was set up in 2010 as a laboratory for financial innovation. It is intended to foster the development of financial services, logistics and information technology by attracting Hong Kong companies.

In addition to raising renminbi capital in Hong Kong, those that set up shop in Qianhai can expect tax breaks and permission to issue local currency bonds. The corporate income tax rate is 15%, compared to 25% nationally, and there are also plans to lower personal income tax rates for financial services professionals. Foreign executives are subject to a tax rate of up to 45% in mainland China versus 17% in Hong Kong.

Details of the renminbi fundraising program have yet to be finalized, but a group of private equity players including The Blackstone Group and KKR have reportedly held preliminary talks with government authorities. In July, John Zhao, CEO of Hony Capital, told media that the company might raise its next renminbi-denominated fund in Hong Kong via the Qianhai program.

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• Topics
• Fundraising
• Renminbi fund
• Greater China
• Renminbi
• China
• Hong Kong (China)
• Fundraising