Regional-level investment groups copying the Minsheng model to brave economic slowdown

China Minsheng Investment Group (CMIG), the country’s premier private investment consortium, has spawned a batch of imitators, as regional-level investment conglomerates look to copy its ownership and management model to weather the economic slowdown.

Look-alike operations to CMIG have been set up in Jiangsu, Zhejiang and Guangdong provinces as wealthy firms and individuals work to combine their resources and business acumen to secure lucrative deals, said Li Huaizhen, CMIG’s president.

“After decades of development, privately-owned companies have realised that their combined efforts could breathe a new life into their growth,” he said.

“The rapid growth of CMIG already proves our business model is successful.”

The State Council approved the creation of the investment house in 2014, part of Beijing’s efforts to encourage the growth of privately-owned operations, while breaking up the monopolies of state-owned, often loss-making, juggernauts.

CMIG has registered capital of 50 billion yuan committed by 59 shareholders, and it has been deemed a success in combining the resources and expertise of large-scale, privately-owned companies as the country’s looks for new ways of maintaining economic growth.