Chinese firm breaks ground with privately managed offshore yuan fund

SHANGHAI, May uk canada goose outlet 15 (Reuters) A private Chinese fund management company plans to break new ground by establishing a privately managed offshore yuan fund as a vehicle for investment in Southeast Asia, taking advantage Canada Goose Coats On Sale of Beijing moves to promote use of its currency overseas.

Yunnan based Highland Capital Management aims to raise 5 billion yuan ($813.96 million) in the first round for a fund focused on investing in companies in Southeast Asia that serve Chinese consumption of overseas tourism services, energy and natural resources.

is an extension of China demand and an attempt to connect Canada Goose Outlet that demand with funding, Highland managing partner salecanadagooseoutlets Daniel uk canada goose Zhou, former director canadian goose jacket of the investment banking division canada goose factory sale at UBS, told Reuters.

Sailing Capital Management, run Canada Goose Online by a unit canada goose clearance sale of the Shanghai Municipal Government, launched a similar fund in Feb. 2012.

Whereas Sailing Capital is state managed, Highland says it is canada goose uk shop will be the first privately managed fund to use buy canada goose jacket the offshore yuan route.

Zhou said that Highland would also help canada goose uk outlet the investment targets attract additional customers for their products and facilitate further financing from mainland sources.

The company will attempt canada goose uk black friday to raise funds from limited partners Canada Goose Jackets (LPs) in both the private and state sectors in China, Zhou said, focusing on finding cheap canada goose uk LPs with canada goose overseas experience operating in sectors related to the investment targets.

In the initial phase, he said, Highland will exit from its investments Canada Goose UK Black Friday in overseas canada goose black friday sale enterprises by on selling its stakes to other mainland investment funds.

Liu Guangxi, head of the Yunnan Province Financial Office, said in an email that the fund had the support of the People Canada Goose sale Bank of China and the provincial government in Yunnan.

Outbound investment using yuan has yet to become economically buy canada goose jacket cheap significant.

Yuan denominated outbound Canada Goose Parka direct canada goose coats investment by Chinese companies in 2012 totalled 30.44 billion yuan ($4.96 billion), compared to $77.2 billion in total outbound foreign direct cheap Canada Goose investment, according to central bank data.

While Chinese companies have been permitted to use yuan for outward direct investment since 2011, the canada goose clearance channel has been under utilised, thanks largely to a complex regulatory environment that hampers movement of investment funds out of China.

In addition, analysts point out that canada goose store while foreign companies doing regular Canada Goose online trade with China can more easily reuse yuan received in payment, the same does not necessarily hold for companies receiving Chinese investment if they don ordinarily use yuan for their businesses.

Zhou said the fund canada goose coats on sale would face challenges moving investment funds out of China in a timely manner due to the red tape.

have to coordinate the various agencies, each working on its own timetable and its own priorities, he said. ($1 = 6.1428 Chinese yuan) (Editing by Simon Cameron Moore).