Date
19 January 2017
China Everbright chairman Chen Shuang said the fund will focus on European assets in line with the One Belt, One Road strategy. Photo: HKEJ
China Everbright chairman Chen Shuang said the fund will focus on European assets in line with the One Belt, One Road strategy. Photo: HKEJ

China Everbright eyes M&A fund in Europe airport, port sectors

China Everbright Ltd. (00165.HK) will establish a fund specializing in mergers and acquisitions in the aviation, port and infrastructure sectors, chief executive Chen Shuang said.

The fund will focus on European assets in the next three to five years in line with the country’s One Belt, One Road strategy, Chen told the Hong Kong Economic Journal.

Part of the plan is to set up logistics parks in European airports and shipping terminals and turn them into transshipment hubs for China’s foreign trade, he said.

The state-backed asset management company will soon establish a fund of funds amounting to 5 billion to 10 billion yuan (US$781.6 million to US$1.56 billion) for investment in infrastructure projects overseas.

It is also set to raise a US$250 million Islamic fund by the end of this year.

The company, which aims to become China’s Blackstone Group, had HK$57.1 billion worth of assets under management in 30 funds as of the end of June.

Meanwhile, the company’s plan to sell its stakes in Everbright Securities Co. Ltd. (601788.CN) and China Everbright Bank Co. Ltd. (06818.HK) is being delayed by restrictions on divestments in A-share companies by substantial shareholders in the wake of the recent stock market slump, Chen said.

[Chinese version中文版]

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