Europe Is a Mess But China Is Scarier: Fund Manager

(Yahoo!Finance) There’s certainly a long list of scary things happening in the world right now that are keeping investors on edge and up at night. But for fund manager Scott Mullinix, who co-manages the Nuveen Large Cap Growth Opportunities Fund (FRGWX), China sits at the top of his list.

“The signs that we’re seeing out of China right now are quite negative,” he says in the attached video. While he believes the market understands the regional risks in Europe, the global fallout from just one misstep by China’s relatively new economic planners “would have major ramifications for world GDP.”

While the IMF now says China should be able to pull off a so-called soft landing, it also warns that there are still significant downside risks to the world’s second largest economy. Risks that need only see Chinese growth slip to “4 to 5 percent” from 7.6% currently, Mullinix says, and the impact “would be very bad.” ===> Continue Reading at Yahoo!Finance

China considering rules to allow insurers to boost private equity investment

(Reuters) – China plans to double the amount insurers can invest in private equity and allow them to trade financial derivatives both at home and abroad as part of efforts to broaden their investment scope, according to a set of draft regulations seen by Reuters.

Insurers will be permitted to invest up to 10 percent of their total assets in private equity, compared with 5 percent previously, according to rules drafted by the China Insurance Regulatory Commission (CIRC). That would potentially unleash about $50 billion of fresh capital into unlisted firms. ===> Continue Reading at Reuters

Reuters: Asia Private Equity Weekly News, July 23, 2012

(Reuters) – News and developments in Asia private equity from Reuters News for the week ending July 20.

JULY 20

U.S. PRIVATE equity fund Carlyle Group has raised about $720 million from the sale of a stake in China’s third-largest insurer, China Pacific Insurance (Group) Co Ltd , a source with direct knowledge of the deal said.

U.S. PRIVATE equity firm TPG Capital is considering partnering with a Hollywood media executive to bid for debt-laden Australian media company Nine Entertainment Co, sources said, in what could be a $3.1 billion buyout.

WARBURG PINCUS, a stakeholder of Titan Petrochemicals Group Ltd, has sued Titan and some of its executives in Hong Kong’s High Court for misrepresentation and breaches of contract.

===> Continue Reading at Reuters

Asia hedge fund teams expand for VAM, GLG

(HedgeWeek) This week VAM Funds, the Luxembourg-based specialist fund manager announced it had expanded its Asian team with the appointment of Paul Bamber as sales manager. Bamber will be responsible for growing VAM’s sales in Hong Kong, China and Japan, which the firm regards as key strategic markets for development in its global distribution plans. The firm reported that business volumes in its funds range had more than doubled over the last 12 months. Bamber will work alongside Linda McLaren who will continue to oversee business development in Singapore, Malaysia, Thailand and Indonesia.

VAM has been operating in Asia for two years and having secured registration from the Monetary Authority of Singapore it is now expecting to receive registration from the Securities and Futures Commission in Hong Kong. Commenting on Bamber’s appointment, Nigel Watson, VAM sales director, said: “With his extensive knowledge of the Asian region, Paul is an important addition to the sales team,” adding that he would help the firm “offer greater levels of support to our business partners”.   ===> Continue Reading at HedgeWeek

WSJ: Hony Capital Joins China’s Private Equity Convertibility Experiment

BEIJING—Hony Capital Ltd., one of China’s largest homegrown private-equity firms, has agreed to become the first investment manager to test the convertibility of the yuan in an experimental financial hub being built near Hong Kong.

China last month designated the Qianhai region in the southern metropolis of Shenzhen as a testing ground for freer currency movements and other service-sector changes, as the country continues its drive to make the yuan a global currency. Nationwide, Beijing still limits yuan … ===> Continue Reading at Wall Street Journal (Subscription Required)

China to Take Private Equity Position in USA via GM Pension Fund

(CNBC) The Chinese government has agreed to buy investment stakes currently held by General Motors’ pension plan, in a deal that will make Beijing a sizeable investor in many of the U.S. and Europe’s largest private equity funds.

The State Administration of Foreign Exchange, which manages China’s more than $3 trillion in foreign exchange reserves, will pay $1.5 billion -$2 billion for GM’s [GM  20.27    0.20  (+1%)   ] positions in blue chip private equity funds managed by firms including Carlyle Group, Blackstone and CVC Capital Partners. ===> Continue Reading at CNBC

Value Partners Remains Largest Hedge Fund in Asia, Despite Losses

(Institutional Investor) The world wasn’t kind to Value Partners in 2011. The Hong Kong–based investment firm, which focuses on Greater China, found that its contrarian stock-­picking strategy offered little shelter from global market turbulence.

As of March 31, Value ­Partners’ assets under management had fallen more than 9 percent from a year earlier, to $7.8 billion. Its flagship, $1.7 billion, Classic Fund lost 17.2 percent in 2011 — a big letdown after 2010, when it gained 8.1 percent. ===> Continue Reading at Institutional Investor

Asia Private Equity Firm Noah Holdings Limited Announces Updated 2012 Forecast

SHANGHAI, July 17, 2012 /PRNewswire-Asia/ — Noah Holdings Limited (“Noah” or the “Company”) (NYSE: NOAH), the leading independent service provider focusing on distributing wealth management products to the high net worth population in China, today announced its updated 2012 forecast.

The Company currently estimates that non-GAAP net income attributable to Noah shareholders for the full year 2012 is expected to be in a range of US$22.0 million and US$25.0 million, the midpoint of the revised range represents a year-over-year decline of approximately 10%. This estimate reflects management’s current assessment and is subject to change. Noah’s non-GAAP net income is net income under US GAAP excluding the effects of all forms of share-based compensation.  ===> Continue Reading at PR Newswire

Blackstone, KKR in talks on new wave of China private equity funds

• China authorities hold talks in HK with foreign funds
• Funds registered in Qianhai can raise yuan from HK investors
• Plans to put foreign funds on more equal footing with locals

HONG KONG, July 17 (Reuters) – Global private equity funds, including Blackstone Group L.P. and KKR, have held early talks with Chinese authorities on a new wave of renminbi funds which could dramatically improve their chances to win deals in China, an executive involved in the discussions said. ===> Continue Reading at Reuters

Hedge Funds Bet Right Before Longest Winning Streak: Commodities

(Bloomberg) Hedge funds boosted their bullish commodity bets above 1 million contracts as mounting speculation that China will take more steps to boost growth spurred the longest rally in prices since February.

Speculators raised their net-long positions across 18 U.S. futures and options by 8.9 percent to 1.05 million contracts in the week ended July 10, Commodity Futures Trading Commission data show. That’s the highest since April 3. Wagers on a wheat rally reached a record. The Standard & Poor’s GSCI Spot Index of 24 raw materials climbed for a third consecutive week, jumping 10 percent in the longest winning streak since Feb. 24. ===> Continue Reading at Bloomberg