In the News: Investors Turn to Invest in China's Secondary PE Market; Mad Dash for Chinese AI Pharma IPO; and China Issues New Carbon Emissions Measures

Credit: Funtap/Adobe Stock

Secondary PE Market an Easier Way to Invest in China

Amid U.S.-China tensions and a market slump that has led to declining valuations, international investors are interested in gaining exposure to China through secondary private equity (PE) investments, according to the South China Morning Post (SCMP).

The market for secondary PE investments and other investment funds provides "diversified and more seasoned" exposure for global investors who want to access Asia, as well as China, said Frederic Azemard, the managing partner of secondary PE investor TR Capital. Investors in the secondary PE markets are specifically interested in sectors in China such as healthcare, services, logistics, consumer products and technology. The distressed property market is another opportunity when property developers are looking to sell their core, as well as their non-core assets.

Additionally, Azemard adds that many international investors view secondary PE investments as a way to "achieve higher and faster liquidity turnover, because these investments typically mature quickly." The secondary PE transaction market has seen rapid growth from 2020 to 2022.