China Development Financial targets RMB fund

CDFH is the only Taiwanese financial services firm that has obtained regulatory approval to establish a private equity fund and a management company in China, executive vice president David Chow told local media.

"We plan to partner with a Chinese state enterprise to set up a renminbi private equity fund in northern China and we expect to secure a cooperation agreement in the first half of the year," Chow said.

Earlier this week, the Taiwan firm's subsidiary, China Development Industrial Bank, also teamed up with Shanghai Lujiazui Financial Holdings to establish a private equity fund valued at RMB2 billion ($317 million) in eastern China.

These expansion plans come on the back of a poor 2011 for CDFH. It recorded a net profit of NT$1.56 million (US$52.89 million), or earnings per share of NT$0.14, and was Taiwan's worst performing financial services company.

Paul Yang, CEO of the group, partly attributed the poor performance to heavy exposure to technology firms in the solar energy, flat panel and LED sectors.

 

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• Topics
• Greater China
• Financials
• Renminbi fund
• China
• Taiwan (China)
• Financial Services
• China Development Financial Holding
• Renminbi