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China's First Education Equity Fund Launched in Chongqing.



CHONGQING, China, Jan. 4 /PRNewswire-Asia/ -- Huiou (Chongqing) Education Equity Investment Fund -- the first of its kind in China -- was officially launched in Chongqing on December 27th, 2009.

China's education sector has been drawing increasing attention from international investors in recent years, due to the country's large population base and stable cash flow in the education sector. In terms of value, China's educational market makes up just 2% of the world's total, while Chinese student population, from primary school through university level, makes up 17% of the world's total, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 a report entitled "Enhancing China's Competitiveness through Lifelong Learning Lifelong learning is the concept that "It's never too soon or too late for learning", a philosophy that has taken root in a whole host of different organisations. Lifelong learning is attitudinal; that one can and should be open to new ideas, decisions, skills or behaviors. " released by the World Bank in 2007. Spending on education accounted for 17.8% of the total expenditures on consumption of services in Beijing in 2008. Spending in the categories of education, culture and recreation accounted for 15.7% of the total expenditures on consumption of services in Shanghai in 2008, compared with 11.9% in Guangdong for the first half of 2009. China's spending on education is relatively low compared to Japan, where such spending accounted for 34.1% of total household income for the 2007-2008 year. However, China's private schools are expanding rapidly, with an annual growth rate between 20 and 30 percent. Because of China's rapid urbanization and development, it is expected to become the educational and vocational training market with the largest development potential worldwide over the next decade, offering huge potential for investors. The World Bank report also shows that even in the economic downturn, the education, healthcare and high-tech sectors still outperform other sectors, as people have more leisure time and see an improvement in their own level of education as a way of riding out or even shortening the economic downturn.

At present, expenditure on education in China accounts for 5% of the GDP GDP (guanosine diphosphate): see guanine. , while the government's participation in the expenditure accounts for only 3% of GDP, far below the projected need of 6% and 9%. The United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , where education is highly valued, is home to over 30 publicly traded companies in the education sector and thousands of private schools. However, not one company in the education sector has an A-share listing in China. Currently, 330 million members of the Chinese populace, a total equivalent to the entire population of the United States, are in school. Based on statistics and the development trend of China's education sector, analysts believe that although some venture capital and private equity firms have invested in several Chinese educational and training institutions, among them Ambow Education, Oriental Standard, Xueda Education and Oriental Babycare, China's educational sector still has huge investment potential.

China's educational and training companies that have listed on overseas markets have brought investors stable returns. Statistics show New Oriental New Oriental Education & Technology Group Inc. (Simplified Chinese 新东方教育科技集团, NYSE: EDU), more commonly New Oriental  Education & Technology Group (NYSE NYSE

See: New York Stock Exchange
 EDU) posted net revenues of US$292.6 million and net profit of US$77.8 million for the 2009 fiscal year, with profit margin reaching 27%. The company's closing price on December 24, 2009 stood at US$75.75 per share, while the original IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard.  price in September 2006 was US$15 per share.

Huiou (Chongqing) Education Equity Investment Fund held an introductory informational meeting on December 27th, marking the prelude to the Fund's series of road shows. Prior to that, many funds and investment institutions expressed strong interest and an intention to invest at an earlier recommendation meeting. Sources have indicated that the fund's management team, comprised of a group of professionals who are active players in Chinese and international capital markets, will seek out education and education-related firms engaged in the cultural and media sectors as their main investment targets, aiming at making the Fund the leader and the top brand in the field of educational investment in China. The Fund plans to raise a total of RMB RMB Right Mouse Button
RMB Regional Management Board (USACE)
RMB Rolf Maier Bode (musician, band)
RMB Ren Min Bi (currency of People's Republic of China) 
5 billion (USD USD

In currencies, this is the abbreviation for the U.S. Dollar.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 735 million), with RMB200-500 million (USD 29-74 million) for the first phase and RMB2 million (USD 0.3 million) as a fund unit, with an operating period of 5+2 years. At present, the Fund is closely working with the responsible government departments, as well as interested banks, brokerages and other financial institutions in Chongqing, in a move to develop strategic cooperations. Following a successful completion of the fundraising, the Fund plans to support the outstanding performers among its list of target companies in their efforts to go public in the Chinese or international markets when the time is appropriate. The Fund's managers will apply professional investment management methodologies, scientific decision-making processes and effective risk control strategies, while operating in accordance with industry-wide accepted standards so as to provide a safe investment channel for Chinese and foreign investors seeking to share the benefits from the high-speed growth of China's education sector by participating in this venture.

Significant progress in the establishment of partnership businesses in China by foreign companies has been achieved as the State Council of China had released the Measures for Administration of Establishment of Partnership Enterprises by Foreign Enterprises or Individuals within China in early December. These measures establish a legal basis for attracting foreign private equity to establish partnership businesses across the country. Some experts in the field believe that foreign equity funds investing in the country should be placed at the third stage of the introduction of foreign direct investment by China. Private equity-led overseas financial capital has been entering the Chinese mainland on a large scale since 2000, following Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov.  and Taiwan enterprises that started making investments in the Pearl River Delta The Pearl River Delta Region (PRD) in China occupies the low-lying areas alongside the Pearl River estuary where the Pearl river flows into the South China Sea. Since the "Open Door Policy" was adopted by the Communist Party of China in the late 1970s, the portion of the delta in  with new set-ups to engage in the "three-plus-one" trading-mix in 1978, and multinationals that have made large-scale strategic investments in China beginning in 1992. Moreover, the mainland Chinese ChiNext, launched at the end of October 2009, has established a good circular model of private equity placement, investment and successful exit at maturity. Very coincidentally, the OTC OTC

See: Over-the-counter.


OTC

See over-the-counter market (OTC).
, known as "the third board" financial market, opened in Chongqing on the same day of the fund's inception, providing smoother and more convenient channels for withdrawals of private equity funds in the future. In terms of flexibility and efficiency, equity investments have more benefits than banks and other traditional financial channels. For this reason, Chongqing's municipal government has expressed a special interest in the start-up Huiou Fund. Beginning last year, Chongqing's municipal government has released the Opinions on Encouraging Development of Equity Investment-Oriented Enterprises and put in place a series of incentive policies for equity investment funds Noun 1. investment funds - money that is invested with an expectation of profit
investment

assets - anything of material value or usefulness that is owned by a person or company
 in terms of taxation, approvals and foreign currency exchange. Mayor Huang Qifan in particular noted the goal of making Chongqing a venue for gathering venture capital and equity investment funds in China.

"Strong support from the government, a professional management team, excellent project reserves, close co-operation with professional services firms both in and outside China, as well as the in-depth understanding of the local business environment are among the many advantages of our fund management. A strong sense of commitment and confidence play as the drivers of our fund growth; meanwhile, the pre-referral has laid a solid foundation. We will continue to work closely with more powerful investors to share good opportunities and strong returns brought by China's booming education industry," a representative of Huiou Fund stated, "We have also established the Huiou Education Charity Fund which aims at helping students without means in the western areas of China in a move to provide access to good educational opportunities for more people."
     For more information, please contract:
    Chongqing Huiou Equity Investment Fund Management Co., Ltd.
     Liu Zuolin
     Chairman
     Mobile: +86-158-2349-5406
     Roger Wang
     Investment Director
     Mobile: +86-138-8322-4986
     Email: rogerw@huioufund.com 


SOURCE Huiou (Chongqing) Education Equity Investment Fund
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Publication:PR Newswire
Geographic Code:9CHIN
Date:Jan 4, 2010
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