BoCom International, a subsidiary of Bank of Communications, China’s fifth-largest lender, aims to raise a US$250-500 million private equity fund to invest in China, Reuters reported. The offshore, US dollar fund would focus on companies in the consumer, health care, clean energy and infrastructure sectors, as well as those involved in high-speed rail systems, according to Simon Hua, head of private equity at BoCom International. Target firms would need to be in a position to list in Hong Kong within two years. The company also plans to set up an asset management firm in China – to be run independently or in partnership with its parent – to operate onshore funds. The first round of fundraising attracted US$51.5 million and a second round closes in May. The parent company is putting up 10-20% of the capital, one third is likely to come from US and European investors, with Asian backers taking up the rest.
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