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Business Times
30-04-2025
- Business
- Business Times
Chinese sovereign fund CIC to sell US$1 billion of US private equity investments: sources
[HONG KONG] Chinese sovereign investor China Investment Corporation (CIC) is selling about US$1 billion of its private equity (PE) investment portfolio in the secondary market, two sources with knowledge of the matter said. The assets are held in a number of funds managed by eight US fund managers, including Blackstone and Carlyle Group, said the sources. CIC has tapped US investment bank Evercore to advise on the sale and aims to complete the divestments by the end of June, they said. The total value of the assets and the sale deadline however are not fixed and could change depending on market interest and pricing, said a third source with direct knowledge of the matter. Blackstone and Carlyle declined to comment. CIC and Evercore did not provide any response to requests for comment. All the sources declined to comment due to the confidentiality and sensitivity of the matter. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The first two sources said CIC started discussing the sale with advisers and asset managers in late 2024 as part of efforts to optimise its investment portfolio. Initially invested in PE funds starting in 2016 and 2017, the US$1 billion in assets is coming to the end of its investment cycle, they said. The move, however, comes as geopolitical and trade tensions, especially between Beijing and Washington, have triggered market turmoil and uncertainty. The tensions between China and the US have also spilt into the financial sector as both countries have sharpened scrutiny of some investments by the other's financial institutions. The Financial Times (FT) reported last week, citing unidentified sources, that Chinese state-backed funds, including CIC, were cutting off new investment in US PE firms in response to pressure from Beijing. CIC has not commented on the FT article. Beijing-headquartered CIC, founded in 2007, is mandated to diversify China's giant foreign exchange holdings via overseas investments. The US has been the Chinese sovereign fund's biggest investment destination, according to its past public disclosures. During the global financial crisis, CIC invested in Morgan Stanley and took a minority stake in Blackstone, which it exited in 2018. CIC is an active investor in US PE funds. The so-called alternative assets comprise nearly half of its portfolio. PE funds typically have an investment cycle of 10 years but a fall in valuations has made it more difficult for them to exit investments via initial public offerings or trade sales since the Covid-19 pandemic. Potential buyers for the CIC investment portfolio include other sovereign funds, secondary-focused asset managers, and private investors such as family offices, said the sources, declining to give details. The portfolio could be sold all together or in separate tranches to different buyers, depending on price negotiations, they said. CIC's latest annual report shows the sovereign fund had US$1.33 trillion of assets under management as at Dec 31, 2023. About 64 per cent of the assets are with external managers. US stocks made up 60.29 per cent of CIC's overseas public market equities as at the end of 2023, the annual report shows. Public equities accounted for 33.13 per cent of its total portfolio. CIC's annualised cumulative 10-year net return stood at 6.57 per cent at the end of 2023, while its annualised cumulative net return since inception was 6.23 per cent. REUTERS
Reuters
30-04-2025
- Business
- Reuters
Chinese sovereign fund CIC to sell $1 billion of US private equity investments, sources say
Summary Companies CIC aims to sell assets via the secondary market, sources say CIC looking to optimise investment portfolio, they say HONG KONG, April 30 (Reuters) - Chinese sovereign investor China Investment Corporation (CIC) is selling about $1 billion of its private equity (PE) investment portfolio in the secondary market, two people with knowledge of the matter said. The assets are held in a number of funds managed by eight U.S. fund managers, including Blackstone Inc (BX.N), opens new tab and Carlyle Group (CG.O), opens new tab, said the people. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. CIC has tapped U.S. investment bank Evercore to advise on the sale and aims to complete the divestments by the end of June, they said. The total value of the assets and the sale deadline however are not fixed and could change depending on market interest and pricing, said a third person with direct knowledge of the matter. Blackstone and Carlyle declined to comment. CIC and Evercore did not provide any response to requests for comment. All the sources declined to comment due to the confidentiality and sensitivity of the matter. The first two people said CIC started discussing the sale with advisers and asset managers in late 2024 as part of efforts to optimise its investment portfolio. Initially invested in PE funds starting in 2016 and 2017, the $1 billion in assets is coming to the end of its investment cycle, they said. The move, however, comes as geopolitical and trade tensions, especially between Beijing and Washington, have triggered market turmoil and uncertainty. The tensions between China and the U.S. have also spilled into the financial sector as both countries have sharpened scrutiny of some investments by the other's financial institutions. The Financial Times reported last week, citing unidentified sources, that Chinese state-backed funds, including CIC, were cutting off new investment in U.S. PE firms in response to pressure from Beijing. CIC has not commented on the FT article. Beijing-headquartered CIC, founded in 2007, is mandated to diversify China's giant foreign exchange holdings via overseas investments. The U.S. has been the Chinese sovereign fund's biggest investment destination, according to its past public disclosures. During the global financial crisis, CIC invested in Morgan Stanley (MS.N), opens new tab and took a minority stake in Blackstone, which it exited in 2018. CIC is an active investor in U.S. PE funds. The so-called alternative assets comprise nearly half of its portfolio. PE funds typically have an investment cycle of 10 years but a fall in valuations has made it more difficult for them to exit investments via initial public offerings (IPOs) or trade sales since the COVID-19 pandemic. Potential buyers for the CIC investment portfolio include other sovereign funds, secondary-focused asset managers, and private investors such as family offices, said the people, declining to give details. The portfolio could be sold altogether or in separate tranches to different buyers, depending on price negotiations, they said. CIC's latest annual report shows the sovereign fund had $1.33 trillion of assets under management as of December 31, 2023. About 64% of the assets are with external managers. U.S. stocks made up 60.29% of CIC's overseas public market equities as of the end of 2023, the annual report shows. Public equities accounted for 33.13% of its total portfolio. CIC's annualised cumulative 10-year net return stood at 6.57% at the end of 2023, while its annualised cumulative net return since inception was 6.23%.
Yahoo
24-04-2025
- Business
- Yahoo
The £120bn Amazon rival chasing Britain in the middle of a trade war
Few in the UK will know the name Jingdong, despite it being one of the world's biggest retailers with annual revenues of nearly $160bn (£120bn). Yet that could soon be about to change. Jingdong – or as it is more commonly known – has its sights set on Britain. The Beijing-headquartered company has embarked on an ambitious hiring spree, poaching talent from the likes of Tesco, Ocado, Amazon, Lidl and Holland & Barrett, and has launched a trial of an online retail brand called Joybuy ahead of an official rollout by the end of this year. It marks a major expansion into the UK for the global retail titan, which has around 600m annual shoppers across the world and employs almost 700,000 people. Richard Qiangdong Liu, its founder and chairman, is one of China's richest people, with a net worth reported to be more than $6bn. While little known to shoppers outside of Asia, is a household name and one of the world's largest online shopping empires. It runs an Amazon-style online 'everything shop' in China, where you can order foods, clothing and goods online and get them delivered to your door. In the UK, it is likely to offer a narrower set of products but still attempt to crack the retail market. The company has so far been tight-lipped on its strategy for the UK, but it has telegraphed its designs on Britain's shores for some time. It emerged as a potential suitor for the electrics retailer Currys last year when it was up for sale, but eventually walked away from the process. Its looming entry into Britain comes at a precarious time for Chinese retail giants amid Donald Trump's trade war. Punishing tariffs may force more Chinese groups to seek other markets outside of the US, with Britain and Europe often seen as likely candidates for expansion. Even before the tariffs, has been steadily expanding outside of its Chinese heartlands as the domestic economy stutters, building ties with the US and Europe. Walmart, the American retail giant, previously owned a $3.7bn stake in which it sold down completely in 2024 amid falling returns. Its shares have fallen more than 43pc in the last five years. The ensuing international push has already seen it grow in Europe, opening, for example, a 27,000sq ft automated warehouse in Poland near the German border. David Sables, chief executive of retail advisers Sentinel Management Consultants, says the prospect of a sustained investment by into the UK could prove worrisome for established supermarkets. 'Do they have the capability to make a big mark? Absolutely they do. Is there room in the UK for another serious player in the discounting area? Absolutely. 'If they go some way to competing on price with Aldi and Lidl, they can earn shoppers.' The trial website of Joybuy so far offers a wide range of ambient goods and frozen foods, as well as soft drinks and alcohol alongside electronics and other non-food products. Currently, it stocks a vast range of imported Asian foods alongside items from some well-known brands such as Tony's Chocolonely and Pip & Nut. No fresh food products are listed and it is understood the retailer has not yet decided whether it will sell them. Matthew Nobbs, a former Lidl and Holland & Barrett executive who has been hired as chief merchandise officer for the UK, said on LinkedIn he was 'getting ready to rumble in the UK for one of China's biggest success stories'. Sables believes there is a 'gap in the market' for the likes of JD because Aldi and Lidl offer very limited online capabilities. This was a deliberate move by the German chains which has helped them heap pressure on the 'big four' supermarkets. 'The fact of the matter is, as soon as you start making those investments [into online retail], that's money you can't put into price,' says Sables. 'By keeping their model really simple – that is how they've managed to achieve their everyday low price.' Conversely, globally prides itself on rapid next-day delivery – a service it says it will be able to offer in the UK with the launch of Joybuy. It touts itself as 'a leading technology and service provider with supply chain at its core'. It comes as many Chinese firms have been battered by Trump's escalating trade wars. The US president has imposed searingly high 145pc tariffs on China, throwing Chinese companies that export to the US into chaos. has thrown its backing behind domestic Chinese manufacturers hammered by Trump's tariffs, vowing to purchase about $27bn (£20bn) worth of goods from China's exporters this year to help them shift their sales to the Chinese market. Mr Trump has also closed a tax loophole which was allowing Chinese companies to import cheap products into the US, sparking fears of so-called 'dumping' of cheap products by Chinese retailers in the UK. However, a person familiar with the situation says will be sourcing the majority of its food products for sale in the UK domestically. 'The ambition for Joybuy is to be a local retailer, locally sourcing as many quality and authentic products as possible. That's better for customers and the market,' they say. It is understood talks have already been set up between and some major British food and drink suppliers. While there may be a gap in the market for Clive Black, an analyst at Shore Capital, warns that existing discount retailers such as B&M have struggled to maintain their upwards trajectory in the wake of the cost of living crisis. He also points to attempts by Amazon to crack the British grocery market which did not go to plan. The online giant last year brought its Amazon Fresh grocery service to an end across a swathe of UK cities. 'It's realised that pure play-online is not economic,' says Black. Crucially, he argues, the majority of British shoppers are still very attached to physical stores, even at the discount end of the market. 'Still 87pc of the population go to shops,' says Black. 'People like [Ocado boss] Tim Steiner have talked absolute nonsense over the years about how everyone's going to shop online. And it's just not true, it hasn't happened.' Sables adds: 'There are still a lot of people who want to pick up their bread, have a look at it, pack up their avocados, feel them and put them in the basket. 'It's not just about price. It has to be a plausible one-stop shop.' A spokesman for said: 'Joybuy is currently in a testing phase of its self-operated online retail business model. The plan is for an official launch of the Joybuy platform by the end of 2025. ' operations in Europe are built on the same principles that define our success in China: delivering high-quality products at great prices, backed by fast and reliable delivery.' Sign in to access your portfolio
Telegraph
24-04-2025
- Business
- Telegraph
China's £120bn retail king is ‘ready to rumble'. But can it crack Britain?
Few in the UK will know the name Jingdong, despite it being one of the world's biggest retailers with annual revenues of nearly $160bn (£120bn). Yet that could soon be about to change. Jingdong – or as it is more commonly known – has its sights set on Britain. The Beijing-headquartered company has embarked on an ambitious hiring spree, poaching talent from the likes of Tesco, Ocado, Amazon, Lidl and Holland & Barrett, and has launched a trial of an online retail brand called Joybuy ahead of an official rollout by the end of this year. It marks a major expansion into the UK for the global retail titan, which has around 600m annual shoppers across the world and employs almost 700,000 people. Richard Qiangdong Liu, its founder and chairman, is one of China's richest people, with a net worth reported to be more than $6bn. While little known to shoppers outside of Asia, is a household name and one of the world's largest online shopping empires. It runs an Amazon-style online 'everything shop' in China, where you can order foods, clothing and goods online and get them delivered to your door. In the UK, it is likely to offer a narrower set of products but still attempt to crack the retail market. The company has so far been tight-lipped on its strategy for the UK, but it has telegraphed its designs on Britain's shores for some time. It emerged as a potential suitor for the electrics retailer Currys last year when it was up for sale, but eventually walked away from the process. Its looming entry into Britain comes at a precarious time for Chinese retail giants amid Donald Trump's trade war. Punishing tariffs may force more Chinese groups to seek other markets outside of the US, with Britain and Europe often seen as likely candidates for expansion. Even before the tariffs, has been steadily expanding outside of its Chinese heartlands as the domestic economy stutters, building ties with the US and Europe. Walmart, the American retail giant, previously owned a $3.7bn stake in which it sold down completely in 2024 amid falling returns. Its shares have fallen more than 43pc in the last five years. The ensuing international push has already seen it grow in Europe, opening, for example, a 27,000sq ft automated warehouse in Poland near the German border. Gap in the market David Sables, chief executive of retail advisers Sentinel Management Consultants, says the prospect of a sustained investment by into the UK could prove worrisome for established supermarkets. 'Do they have the capability to make a big mark? Absolutely they do. Is there room in the UK for another serious player in the discounting area? Absolutely. 'If they go some way to competing on price with Aldi and Lidl, they can earn shoppers.' The trial website of Joybuy so far offers a wide range of ambient goods and frozen foods, as well as soft drinks and alcohol alongside electronics and other non-food products. Currently, it stocks a vast range of imported Asian foods alongside items from some well-known brands such as Tony's Chocolonely and Pip & Nut. No fresh food products are listed and it is understood the retailer has not yet decided whether it will sell them. Matthew Nobbs, a former Lidl and Holland & Barrett executive who has been hired as chief merchandise officer for the UK, said on LinkedIn he was 'getting ready to rumble in the UK for one of China's biggest success stories'. Sables believes there is a 'gap in the market' for the likes of JD because Aldi and Lidl offer very limited online capabilities. This was a deliberate move by the German chains which has helped them heap pressure on the 'big four' supermarkets. 'The fact of the matter is, as soon as you start making those investments [into online retail], that's money you can't put into price,' says Sables. 'By keeping their model really simple – that is how they've managed to achieve their everyday low price.' Conversely, globally prides itself on rapid next-day delivery – a service it says it will be able to offer in the UK with the launch of Joybuy. It touts itself as 'a leading technology and service provider with supply chain at its core'. Trade war turmoil It comes as many Chinese firms have been battered by Trump's escalating trade wars. The US president has imposed searingly high 145pc tariffs on China, throwing Chinese companies that export to the US into chaos. has thrown its backing behind domestic Chinese manufacturers hammered by Trump's tariffs, vowing to purchase about $27bn (£20bn) worth of goods from China's exporters this year to help them shift their sales to the Chinese market. Mr Trump has also closed a tax loophole which was allowing Chinese companies to import cheap products into the US, sparking fears of so-called 'dumping' of cheap products by Chinese retailers in the UK. However, a person familiar with the situation says will be sourcing the majority of its food products for sale in the UK domestically. 'The ambition for Joybuy is to be a local retailer, locally sourcing as many quality and authentic products as possible. That's better for customers and the market,' they say. It is understood talks have already been set up between and some major British food and drink suppliers. A 'one-stop' shop While there may be a gap in the market for Clive Black, an analyst at Shore Capital, warns that existing discount retailers such as B&M have struggled to maintain their upwards trajectory in the wake of the cost of living crisis. He also points to attempts by Amazon to crack the British grocery market which did not go to plan. The online giant last year brought its Amazon Fresh grocery service to an end across a swathe of UK cities. 'It's realised that pure play-online is not economic,' says Black. Crucially, he argues, the majority of British shoppers are still very attached to physical stores, even at the discount end of the market. 'Still 87pc of the population go to shops,' says Black. 'People like [Ocado boss] Tim Steiner have talked absolute nonsense over the years about how everyone's going to shop online. And it's just not true, it hasn't happened.' Sables adds: 'There are still a lot of people who want to pick up their bread, have a look at it, pack up their avocados, feel them and put them in the basket. 'It's not just about price. It has to be a plausible one-stop shop.' A spokesman for said: 'Joybuy is currently in a testing phase of its self-operated online retail business model. The plan is for an official launch of the Joybuy platform by the end of 2025. ' operations in Europe are built on the same principles that define our success in China: delivering high-quality products at great prices, backed by fast and reliable delivery.'
Yahoo
24-04-2025
- Business
- Yahoo
The £120bn Chinese retail giant targeting Britain as Trump's tariffs hit
Few in the UK will know the name Jingdong, despite the fact it is one of the world's biggest retailers with annual revenues of nearly $160bn (£120bn). Yet that could soon be about to change. Jingdong – or as it is more commonly known – has its sights set on Britain. The Beijing-headquartered company has embarked on an ambitious hiring spree, poaching talent from the likes of Tesco, Ocado, Amazon, Lidl and Holland & Barrett, and has launched a trial of an online retail brand called Joybuy ahead of an official rollout by the end of this year. It marks a major expansion into the UK for the global retail titan, which has around 600m annual shoppers across the world and employs almost 700,000 people. Richard Qiangdong Liu, its founder and chairman, is one of China's richest people, with a net worth reported to be more than $6bn. While little known to shoppers outside of Asia, is a household name and one of the world's largest online shopping empires. It runs an Amazon-style online 'everything shop' in China, where you can order foods, clothing and goods online and get them delivered to your door. In the UK, it is likely to offer a narrower set of products but still attempt to crack the retail market. The company has so far been tight-lipped on its strategy for the UK market, but it has telegraphed its designs on the UK for some time. It emerged as a potential suitor for the electrics retailer Currys last year when it was up for sale, but eventually walked away from the process. Its looming entry into Britain comes at a precarious time for Chinese retail giants amid Donald Trump's trade war. Punishing tariffs may force more Chinese groups to seek other markets outside of the US, with Britain and Europe often seen as likely candidates for expansion. Even before the tariffs, has been steadily expanding outside of its Chinese heartlands as the domestic economy stutters, building ties with the US and Europe. Walmart, the American retail giant, previously owned a $3.7bn stake in which it sold down completely in 2024 amid falling returns. Its shares have fallen more than 43pc in the last five years. The ensuing international push has already seen it grow in Europe, opening, for example, a 27,000sq ft automated warehouse in Poland near the German border. David Sables, chief executive of retail advisers Sentinel Management Consultants, says the prospect of a sustained investment by into the UK could prove worrisome for established supermarkets. 'Do they have the capability to make a big mark? Absolutely they do. Is there room in the UK for another serious player in the discounting area? Absolutely. If they go some way to competing on price with Aldi and Lidl, they can earn shoppers.' The trial website of Joybuy so far offers a wide range of ambient goods and frozen foods, as well as soft drinks and alcohol alongside electronics and other non-food goods. Currently, it stocks a vast range of imported Asian foods alongside products from some well-known brands such as Tony's Chocolonely and Pip & Nut. No fresh food products are listed and it is understood the retailer has not yet decided whether it will sell them. Matthew Nobbs, a former Lidl and Holland & Barrett executive who has been hired as chief merchandise officer for the UK, said on LinkedIn he was 'getting ready to rumble in the UK for one of China's biggest success stories'. Sables believes there is a 'gap in the market' for the likes of JD because Aldi and Lidl offer very limited online capabilities. This was a deliberate move by the German chains which has helped them heap pressure on the 'big four' supermarkets. 'The fact of the matter is, as soon as you start making those investments [into online retail], that's money you can't put into price,' says Sables. 'By keeping their model really simple. That is how they've managed to achieve their everyday low price.' Conversely, globally prides itself on rapid next-day delivery – a service it says it will be able to offer in the UK with the launch of Joybuy. Its touts itself as 'a leading technology and service provider with supply chain at its core'. It comes as many Chinese firms have been battered by Trump's escalating trade wars. The US president has imposed searingly high 145pc tariffs on China, throwing Chinese companies that export to the US into chaos. has thrown its backing behind domestic Chinese manufacturers hammered by Trump's tariffs, vowing to purchase about $27bn (£20bn) worth of goods from China's exporters this year to help them shift their sales to the Chinese market. Mr Trump has also closed a tax loophole which was allowing Chinese companies to import cheap products into the US, sparking fears of so-called 'dumping' of cheap products by Chinese retailers in the UK. However, a person familiar with the situation says will be sourcing the majority of its food products for sale in the UK domestically. 'The ambition for Joybuy is to be a local retailer, locally sourcing as many quality and authentic products as possible. That's better for customers and the market,' it says. It is understood talks have already been set up between and some major British food and drink suppliers. While there may be a gap in the market for Clive Black, an analyst at Shore Capital, warns that existing discount retailers such as B&M have struggled to maintain their upwards trajectory in the wake of the cost of living crisis. He also points to attempts by Amazon to crack the British grocery market which did not go to plan. The online giant last year brought its Amazon Fresh grocery service to an end across a swathe of UK cities. 'It's realised that pure play-online is not economic,' says Black. Crucially, he argues, the majority of British shoppers are still very attached to physical stores, even at the discount end of the market. 'Still 87pc of the population go to shops,' says Black. 'People like [Ocado boss] Tim Steiner have talked absolute nonsense over the years about how everyone's going to shop online. And it's just not true, it hasn't happened.' Sables adds: 'There are still a lot of people who want to pick up their bread, have a look at it, pack up their avocados, feel them and put them in the basket. 'It's not just about price. It has to be a plausible one-stop shop.' A spokesman for said: 'Joybuy is currently in a testing phase of its self-operated online retail business model. The plan is for an official launch of the Joybuy platform by the end of 2025. ' operations in Europe are built on the same principles that define our success in China: delivering high-quality products at great prices, backed by fast and reliable delivery.' 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