Sep 25, 2019

Funding for China's private equity market falls by a third

Private capital investment in China slowed markedly in the first half of the year, data from the Emerging Market Private Equity Association released Tuesday showed.

By the numbers: Capital invested in China's private markets fell from $15.1 billion in the first half of 2018 to $9.8 billion through June 2019, with deal count across all transaction types in the country declining from 582 to 322 over the same period.

The big picture: Emerging markets broadly have suffered, with private equity and venture capital seeing declines of 10% and 32%, respectively, in the period through June, compared to 2018.

  • However, the decline "was expected," EMPEA said in a release, "given the sheer amount of capital raised in 2018, particularly in Emerging Asia and Latin America."

But, but, but: The trade group representing EM institutional investors, fund managers and industry advisors also cautioned that the "slowdown in private capital investment activity in the first half of 2019 was more pronounced amid rising trade tensions between major economies and a more uncertain global economic outlook."

Go deeper: The world is increasing its investment in Chinese markets

Go deeper

Foreign investors have already pulled back from China

Data: Institute of International Finance; Table: Axios Visuals

Investment in Chinese assets fell significantly this year as a combination of the trade war and increasingly attractive opportunities elsewhere spread money across a variety of locations in the emerging world.

The big picture: While the economies of many emerging countries are feeling the pressure from China's slowdown and reduced global trade, foreign investment has picked up notably this year from 2018.

Go deeperArrowOct 2, 2019

China seems unfazed by U.S. threats to limit investor access

Illustration: Lazaro Gamio/Axios

China appears unbothered by news the Trump administration is considering limiting U.S. investors’ portfolio flows into the country.

What's happening: China has been opening its capital markets to foreign investment, and over the past 8 years money flowing into China's stocks and bonds has grown 6-fold to nearly $1.3 trillion, per Wind Information data shared by Seafarer Funds.

Go deeperArrowSep 30, 2019

Private equity maximized profits while sick children were neglected

A nursing company controlled by private equity firms left a trail of injury reports and seven child deaths last year as it pushed to maximize its profits, Bloomberg News reports, citing inspection reports, internal documents and interviews from former employees.

The big picture: "Home health care is considered an especially promising private-equity investment because it can save on expensive hospital stays, while generating revenue for years," according to Bloomberg.

Go deeperArrowOct 23, 2019