PC-making city looks to investment groups for aid
Kunshan, Jiangsu, where one in every two of the world's personal computers and tablets is made, is pressing hard to upgrade its industries by joining hands with international financial power houses, including Blackstone Group and Deutsche Bank's private equity arm.
The Huaqiao Economic Development Zone in Kunshan has entered an agreement with Blackstone to invest 100 million yuan in the investment firm, which manages approximately US$160 billion in assets around the world.
Andrew Gu Zhirong, deputy director of the investment promotion bureau in Huaqiao, said: 'We are hoping Blackstone can help the companies in Kunshan to tap overseas capital markets and initial public offerings.' Gu said companies could cash in on Blackstone's expertise when they hold roadshows abroad.
Mark Cho, director and head of RREEF China, the private equity arm of Deutsche Bank, said: 'Kunshan is searching for an alternative to the existing electronics manufacturing industry as more and more factories are leaving for the inner mainland cities for cheaper labour costs.'
RREEF will identify potential property projects in Kunshan, package them in the form of equity funds and sell them to overseas investors, Cho said.
Right Focus Investment, a Hong Kong-based investment and trading company, plans to invest US$120 million in Huaqiao for the construction of a 60,000 square metre technology park for Dell.
Separately, Kerry Logistics is to set up a HK$256 million component logistics centre for imported luxury cars.
Kunshan municipal government signed an agreement with 15 companies and institutes yesterday worth a total of US$780 million, including deals with firms representing the financial, hi-technology and logistics industries.