Blackstone wants to launch yuan private equity fund in China

Blackstone Group LP holds negotiations with the Shanghai city government to set up a wholly owned China subsidiary as part of its preparations to launch a local-currency private equity fund.

Shanghai government said that Shanghai would soon allow international private equity firms to incorporate locally in China`s financial hub so that they could launch yuan-denominated funds to invest in Chinese companies.

According to sources, the Shanghai Financial Service Office has expressed support to senior executives of Blackstone.

Blackstone would not slow its investments in China despite the global financial crisis, as high economic growth and low valuations promised good returns, said China Chairman Anthony Leung.