Regulation
Fund focus: Vitalbridge plays it safe
The China-based venture capital firm declined to increase its Fund II hard cap as regulatory uncertainty mounted. It now has $275 million in dry powder earmarked for services digitalization
China in six trends
Key themes in China private equity fundraising, investment, and exits
Hong Kong outlines plans for local SPAC listings
Hong Kong Exchanges & Clearing (HKEx) has proposed rules for IPOs by special purpose acquisition companies (SPACs), admitting they are more stringent than the US system, but noting the need for more safeguards in a relatively retail investor-heavy market.
China's Ximalaya abandons US IPO
Ximalaya, a Chinese online audio platform backed by the likes of Tencent Holdings, General Atlantic, and Goldman Sachs, has canceled its planned IPO.
China take-privates: Holding pattern
Pressure is mounting on Chinese companies listed in New York, from domestic and US regulators. Is another wave of PE-backed take-privates imminent?
China launches Beijing Stock Exchange
China has set up its first new bourse since the Shanghai and Shenzhen exchanges in 1990. Beijing Stock Exchange is expected to facilitate exits for small to medium-sized enterprises (SMEs).
China promises clampdown on illegal PE fundraising
China’s securities regulator has pledged to crack down on illegal domestic private equity fundraising, specifically products that managers claim are aimed at qualified investors but they in fact distribute to the retail market.
Blockchain: Going mainstream
The most disruptive technology in financial services is also the most esoteric and misunderstood. As a long, speculative uptake phase unfolds, investors are coming to terms with the future
Vision Fund pulls back from China amid regulatory uncertainty
SoftBank Vision Fund is taking a “wait and see” approach to China, holding back on new investments in the country until the full ramifications of regulatory action in the technology sector are known.
China education: Opportunity erased?
Private equity investors have pumped billions of dollars into Chinese online education platforms, notably in the K-12 space. A regulatory crackdown has left them wondering how they can get their money back
India IPOs: A pleasant surprise
The lack of a reliable IPO channel is a longstanding exit obstacle for venture capital investors in India. Domestic listings may, unexpectedly, prove to be the answer
China regulatory crackdown threatens PE education deals
China has imposed severe restrictions on private tutoring that appear to undermine the commercial viability of companies in the space, potentially making private equity investment unviable.
Australia LPs: Revert to the mean
Engagement, efficiency, and accountability are the driving forces behind reforms to Australia’s superannuation system. But could private equity lose out in a race to the middle on returns?
Tech investment surges in India, SE Asia as China plummets
A drop-off in PE and VC technology investment in China in the second quarter of 2021 – widely linked to a multi-faceted regulatory crackdown on the sector – was to some extent counterbalanced by record levels of activity in India and Southeast Asia.
2Q analysis: Trouble in China
Efforts to rein in China’s technology giants have dampened investor sentiment, with India and Southeast Asia stepping into the void. China remains active for fundraising, but there are fears that US IPO activity could take a hit
Regulator blocks China live-streaming platform merger
China’s antitrust watchdog has blocked a merger of Huya and Douyu - the country's two largest video game live-streaming platforms - initiated by Tencent Holdings.
PE & gambling: Ante up
Private equity has exhibited consistent appetite for gambling-related assets amid pandemic-fueled uncertainty. Regulation remains a significant wildcard in Asia. Reputational risk, not so much
China: A controversial ESOP
An employee stock ownership plan introduced alongside Hillhouse Capital’s 2019 investment in Gree Electric Appliances has raised questions about enrichment and alignment
Carried interest: Safe in Hong Kong?
Tax treatment of carried interest has been an issue of contention in Hong Kong for several years. Just when it seemed to be resolved, draft implementation guidelines are causing disquiet
China IPOs: Regulatory rumblings
China’s Star Market has seen a drop-off in IPOs as regulators call for heightened scrutiny of listing candidates – to the point of asking PE and VC investors to identify the LPs in their funds
Shanghai broadens investment scope of QFLP
Shanghai is giving foreign investors better access to unlisted assets and private funds - under an expanded Qualified Foreign Limited Partner (QFLP) regime - as part of efforts to establish itself as a global asset management hub.
Vietnam SOEs: Diverted divestments
Murky accounting and politics have rapidly decelerated the privatization of Vietnam’s government-owned companies in recent years. Private equity is biding its time and testing creative inroads
Deal focus: Centurium, Joy re-up in China's Luckin Coffee
Centurium Capital and Joy Capital have invested $250 million in scandal-hit Chinese coffee shop chain, with Centurium describing it as a sign of faith in the company’s business model and long-term prospects.
China’s Danke to be delisted in US
The New York Exchange is set to delist Chinese apartment rental service provider Danke, having halted trading in the stock on March 15 because of poor information disclosure.
