POTENTIAL STILL STRONG FOR PRIVATE EQUITY IN CHINA, SAYS STUDY

Private equity experts say that despite several high-profile deals falling through, the market for such deals in China remains attractive. In a report issued by Private Equity Asia, funds raised by the China target market have soared to over US$5 million for the first half of 2007, representing a 238.6% increase over the past year. "Those [regulators] are to some extent creating hindrances, but the figures show that, all in all, investors are managing to work around difficulties," said Jamie Paton of the Private Equity firm 3i.

Leading funds such as CDH, IDG-Accel, and Sequoia have all closed successfully in recent months, while global investors still target the PRC market. "China is currently the hottest market in terms of a fund destination," said Paton.