London Asia Capital has formed a joint venture with Shanghai United Assets and Equity Exchange (SUAEE), one of China’s 12 government-owned private equity exchanges.
Under the agreement, the two firms will work together to restructure, raise capital and take public Chinese companies outside of China.
SUAEE currently has more than 300 companies listed on its exchange.
Under Chinese law, state-owned businesses and assets being privatized or sold must be advertised through one of the country’s 12 private equity exchanges. SUAEE is said to be responsible for about half of the assets sold through these exchanges.
Separately, London Asia and SUAEE will consider developing a private equity fund within China to assist the companies that they will restructure and list.