On July 29, China Investment Co., Ltd. (hereinafter referred to as China Investment Corporation) published its annual report. The 11.7% and 12.9% investment income transcripts seemed to wipe out the haze of investment losses in 2008. The former is the return on its global portfolio; the latter is the return on total capital achieved after the combination of the return on overseas investment and the return on the Central Huijin Company, a wholly-owned subsidiary of CIC. This set of data for the 2008 annual report is -2.1% and 6.8%.
The joy of investment profitability has not been dissipated. In early August, news broke that CIC had sold Morgan Stanley (hereinafter referred to as Morgan Stanley) stocks at a loss. Since July 21, 2010, CIC has made six shots to reduce the holding of ordinary shares of Morgan Stanley, with a maximum of US $ 27.25 per share and a minimum of US $ 27.04, which are lower than the US $ 27.44 subscription for Daimler's rights issue in June 2009. As of August 3, CIC has sold a total of 17.17 million shares of Morgan Stanley, cashing in about 467 million US dollars. Some people in the industry believe that CIC's sale of Morgan Stanley shares at a loss price is to a considerable extent out of the need to evade US regulators.
The frequent moves of CIC have aroused great concern in the market, and while paying attention to CIC, the first investment of the Blackstone Group of CIC that year is undertaking a quiet large-scale fundraising and investment campaign in the Chinese market.
According to the report, as of July 31, 2010, the amount of funds raised by 32 private equity funds that can invest in mainland China rose 616.9% year-on-year, surpassing the total amount of funds raised in 2009. The most important reason is that- The establishment of the Blackstone Capital Partnership VI will be used to raise foreign currency funds in China, India and other Asia-Pacific countries. The scale of foreign currency funds has exceeded 10 billion US dollars-almost 6 times the amount raised by the Shanghai Financial Industry Investment Fund 11 billion yuan.
Social security figure suspects black stone investors
In May 2007, CIC, which is still in preparation, spent $ 29.605 per share to subscribe for 101 million non-voting shares of Blackstone Group at a total cost of $ 3 billion. As of the close of August 5, 2010, Blackstone Group's share price was $ 11.51. Over a period of more than three years, the floating loss of this $ 3 billion investment still exceeded 60% to about $ 1.8 billion.
In addition to the failure of the Blackstone Group to actively dissolve the US $ 3 billion of CIC's investment, it seems to be at ease in the Chinese market whether it is in terms of attracting funds or seeking active investment in projects. With the help of CIC's "Dongfeng", Blackstone Group began to buy shares of Blue Star Group, buy Shanghai Business Building, build Shouguang Logistics Park, and even set up a mainland China fund to attract attention including social security funds.
Perhaps for the Blackstone Group, through the reputation of CIC, and even the reputation of the Social Security Fund in the future, its expansion on the Chinese territory has just begun.
If it were not for a lock-up period of up to 4 years, perhaps the CIC's reduction of shares is not just Morgan Stanley's stock.
However, as Schwarzman, CEO of the Blackstone Group, said, they do not care about short-term investment. For CIC, the investment of 3 billion US dollars has been floating for three consecutive years, and "does not pay attention to short-term benefits. The investment income of Blackstone's investment in China for three years is full.
"No one will be resistant to Blackstone. Even state-owned listed companies like Blue Star have chosen Blackstone. Why should others refuse?" Said An Bin Group analyst Xu Bin. Indeed, when the Blackstone Group initially invited Liang Jinsong to serve as the chairman of the Blackstone Greater China region, the former Financial Secretary of the Hong Kong Special Administrative Region began to lobby the country. Subsequently, CIC, which is still in the preparatory stage, can't wait to invest 3 billion US dollars, and this special shareholding has almost laid the foundation for the unimpeded future of Blackstone Group in China.
In September 2007, Blackstone Group invested US $ 600 million to purchase a 20% stake in Bluestar. In June 2008, Shanghai Changshou Commercial Plaza was bought at a price of 1.1 billion yuan, which was the first sale of Blackstone Group in China's real estate industry.
On October 31, 2009, Blackstone Group announced the establishment of Blackstone (China) Equity Investment Management Company in Shanghai, responsible for the management of the first regional RMB fund established in Pudong, the "China Development Investment Fund", and introducing it to Shanghai Lujiazui Financial Development Company became the first investor in the fund. The fund with a planned scale of RMB 5 billion will focus on Shanghai and the surrounding Yangtze River Delta region. A source pointed out that the National Social Security Fund may be a major investor in the fund.
In April 2010, Blackstone Group took the lead in reaching an agreement with Shouguang Logistics Park, one of China's largest agricultural product market operators, to invest approximately US $ 600 million in Shouguang Logistics Park before it is listed in Hong Kong Park's 30% equity.
So far, Blackstone has completed the triple jump process in three years. From the initial Bluestar ’s $ 600 million investment to the latest tens of billions of dollars of funding, Blackstone ’s goal for the Chinese market has been clear, "In fact, Blackstone can enter The rapid acquisition of projects in the Chinese market is largely aided by the government ’s background. â€Xu Bin said that whether it is the Chinese management or the company ’s shareholders, or even the rumored social security fund joining, will further strengthen the strength of Blackstone in China.
As Schwarzman said, "China is a different market, we 'did not try' to seek differences, but tried to act in accordance with Chinese rules."
Blackstone's investment in China in 3 years earns 100%
CIC's investment in Blackstone has been in a loss for three years, but Blackstone's scenery in China is infinite, and its profits have doubled.
According to the Blackstone Group ’s calculation of US $ 11.51 per share on August 5, when CIC was only one year away from lifting the ban, the investment of US $ 29 per share for that year has still had a floating loss of up to 61%, or a loss of approximately US $ 1.8 billion. If according to Lou Jiwei, chairman of CIC, CIC further increased the shareholding of Blackstone. If it is calculated by more than 10%, then this loss may be greater.
In contrast to the company's stock price, Blackstone Group has chosen China as a holy place for investment hedging since the financial crisis. Not only there are more than US $ 10 billion in Asia-Pacific funds, but also a special RMB fund has been established to invest in China. "The most important and main investment direction of the Blackstone Group in China is the real estate industry, followed by animal medicine, agriculture and financial industries Of course, it also includes the Blue Star Group. "Said Fu Xinghua, research director of Zero2IPO Group.
As Schwarzman said, “The financial crisis has ushered in a spring of investment for PEs like Blackstone with cash in hand. Because the financial crisis squeezed out the asset bubble, cheap financial assets are now everywhere.†Therefore, the Blackstone Group Three years in China became the investment year of its harvest.
Among them, taking only the commercial real estate purchased by the Blackstone Group in 2008 as an example, data from two statistical agencies, Yiju and Youwei, show that the average price increase in Shanghai in 2009 was as high as 50%, and the highest increase in individual properties reached 120%. This means that this investment of 1.1 billion yuan, Blackstone made at least a profit of 550 million yuan, and the highest income reached 1.32 billion yuan, more than double the net profit of the profit from the sale of the project that year.
At the same time, the Shouguang Logistics Park invested by Blackstone and other funds is expected to achieve a transaction volume of 10 billion yuan in 2010 and will maintain an annual growth rate of 20% in the next few years. This means that investment institutions such as Blackstone, which enjoys a 30% stake in the company, can profit from it by at least 20% annually.
The Bluestar Group, which first invested in 2007, has become one of the few blackstone projects in China that has a floating loss. Among them, Shenyang Chemical, Bluestar Cleaning and Xingxin Materials follow the closing price on the first trading day of September and August On the 6th midday price calculation, the declines reached 47%, 12% and 81%, with an average decline of 46%. However, according to previous news, the investment of 600 million US dollars will be paid in installments. If the performance of Blue Star's companies does not reach the blackstone standard, the funds will be deferred.
Despite this, the average return of the Blackstone Group's investment projects in China in the past three years is still close to 100%, which is called zero investment mistakes. The latest news claims that Luxin High-Tech, which is carrying the "first venture capital" halo, is also seen by Blackstone and is negotiating cooperation matters. The capital for the acquisition of the company is from Blackstone China, which may appear in the Social Security Fund RMB fund.
"Almost all funds hope to catch the ship of the social security fund, because with the social security fund, it is equivalent to having a strong backing." Zhou Wei, a partner of Kaipeng Huaying Venture Capital Fund, admitted that if Blackstone cooperates with social security, The strong background of the government will have a huge effect on its investment projects.
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