London Asia partners with Chinese government

The China-focused UK investment and merchant banking group has teamed up with China’s Ministry of Information Industry plus three local entities in a push for greater deal flow, expanded geographical reach.

London Asia Capital, the AIM-listed Greater China-focused investment and merchant banking group based in London, has formed four new strategic alliances in China, including one with the Ministry of Information Industry Sanda Centre (MIISC), according to a company statement. MIISC is a governmental agency responsible for coordinating, promoting, developing and internationalising China’s information and communication industry.

London Asia aims to benefit from the agency’s already established partnerships with leading industry brands such as Microsoft, Panasonic, NEC and Motorola, the company said in a statement.

Littlewood: forming new partnerships in China

Under the terms of the agreements with its new partners, London Asia will have access to potential deal flow and portfolio of partners who in turn will utilise their networks to introduce London Asia to potential investment and acquisition opportunities for its new fund. 

London Asia recently announced the raising of a sponsored £50 million (€73 million; $88 million) fund that is due to be listed on AIM in early March.

In addition to MIISC, London Asia has also partnered with Hangzhou Hi-Tech Venture Capital, Heilongjiang Hi-Tech Venture Capital, and the provincial bureau of small and medium enterprises in the Zhejiang province. These alliances aim to extending London Asia’s geographical reach beyond the major cities of Beijing and Shanghai.

Owned by the city government of Hangzhou, Hangzhou Hi-Tech currently has 20 investee companies with total investment of RMB 150 million (€15.6 million; $18.6 million). The alliance with the Zhejiang provincial bureau will give London Asia access to 30,000 SMEs represented through 20 branches across the province. Opportunities presented by these two partnership agreements have prompted London Asia to establish a new office in Hangzhou, the capital city of Zhejiang.

In China’s northern most province Heilongjiang, Chenergy has invested in over twenty businesses, and is looking to London Asia to assist in finding foreign partners and investors, and realizing its investments through trade sale or IPO.

“These new alliances build on our existing extensive infrastructure in China, extending our geographical reach and ability both to access investment opportunities for ourselves and the new private equity fund we are launching,” Simon Littlewood, chief executive of London Asia, said in the statement.