CICC raising takeover money

16 May 2011

CICC raising takeover money
China International Capital Corporation (CICC) is attempting to raise around five billion yuan ($768 million) to help it invest in domestic takeovers.

A company executive with direct knowledge on the matter - who declined to be identified - told Bloomberg that China's top-ranking investment bank last year is looking to generate the money after amendments were made that allow buyers to raise funds through private placements.

The official noted that investors include both pension funds and insurers.

Jiangsu Yanghe Brewery Joint-Stock Company had earlier revealed that it hoped to invest 300 million yaun in CICC's industry consolidation fund, which would be managed by the lender's CICC Jiacheng Investment Management Company investment unit.

Approval for setting up the fund was received from the China Securities Regulatory Commission, the source added.

Bloomberg recently reported that The People's Bank of China noted banks in China will need to set aside an increase of 0.5 percentage points to bolster their reserve requirements.

By Asim Shah
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