beyondbrics

It’s not just the Chinese who are making money abroad. Private equity funds are making a tidy sum off of China’s economic boom, a reality most recently illustrated by the Hong Kong listing of China’s largest diary farmer, China Modern Diary, which listed late last month, writes the FT’s Henny Sender. The listing valued the company at HK$2.89 per share, a value worth 3.3 times more than what KKR, the US private equity firm, put into it two years ago.

An estimated $50bn has been raised for Chinese companies by international and local companies, a large part of which has been invested over the last three years. Favoured sectors include financials, auto rental and travel – all of which focus on China’s booming consumption story. KKR on Thursday said it planned to invest in VATS, the biggest liquor chain on the mainland, and another flourishing market. But good deals are still hard to find and the competition is heating up. Read more here.