Prepare for a looming buyers’ market in global assets, says Chinese firm seeking to boost foreign holdings

China Everbright CEO says his goal is to turn the state-owned investment firm into ‘China’s Blackstone’ by increasing overseas assets to half of its total

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Chen Shuang, chief executive of China Everbright, expects new investment opportunities to arise amid global economic uncertainties. Photo: Nora Tam

Published: 9:00am, 8 Apr 2019Updated: 10:52am, 8 Apr 2019

The financial services arm of China Everbright Group, one of the first state-owned conglomerates established in Hong Kong in the early 1980s, is planning to enlarge its global portfolio and transform itself into an international private equity and asset management firm.

“This year, we will continue to increase the percentage of foreign asset allocation in order to maintain steady growth. The strategy includes increasing investments through our funds and boosting our US dollar denominated funds,” said Chen Shuang, chief executive of China Everbright, in an exclusive interview with the Post.

Chen said he hopes to bring the ratio of assets invested overseas to 50 per cent from its current level of below 40 per cent, without citing the time frame. The fund had HK$143.5 billion (US$18.2 billion) under management as of December 2018, refecting a rise of 11 per cent on year.

The strategy is to help mitigate risk by diversifying away from the mainland as its economy is expected to continue to cool. Gross domestic product growth is forecast to drop to about 6.3 per cent this year, a 20-year low. Chen said he expected new investment opportunities to arise amid global economic uncertainties.

A branch of China Everbright Bank in Shanghai. Photo: AFP

China Everbright was established under the control of the State Council in Hong Kong in 1983 as Beijing launched its ambitious overseas investment drive. The company, which listed in Hong Kong in November 1994, has 62 actively managed funds spanning real estate, health care, advanced technology and high-end manufacturing.

The firm is a backer of Terminus Technologies, a company which uses artificial intelligence and the internet of things for applications that include smart buildings, community services and public security.

Among other ventures, China Everbright is the controlling shareholder in China Aircraft Leasing Group Holdings, an investor in artificial intelligence company SenseTime and a backer of electric car company Nio.