China's richest man teams up with Bear Stearns
By Shu-Ching Jean Chen (Forbes)Updated: 2007-03-21 08:49
HONG KONG - Not content to sit by while the fortune he made from building China's largest electronics retailer is eroded by low interest rates and rising inflation, China's richest man, Wong Kwong Yu, is busily investing his money.
 Not content to sit by while the fortune he made from building China's largest electronics retailer is eroded by low interest rates and rising inflation, China's richest man, Wong Kwong Yu, is busily investing his money. [newsphoto/file] |
Wong's Eagle Investment Group and Bear Stearns' private equity arm will each kick in $250 million to invest in local retailers who may have the potential to go national.
The move caps a month of hectic investing by Wong through his personal investment vehicles, Eagle Investment Group and Gome Property Investments.
Earlier in the month, Wong, who is also known as Huang Guangyu in Mandarin Chinese, joined with the Singapore-based real estate investment company Pacific Star to set up an $800 million fund to buy real estate in China.
This weekend, Wong said he was entering the fashion industry, setting up a trading center to promote demand for China's clothing labels, borrowing from his experience in selling electronics.
Wong has ample capital and investment experience at his disposal, having almost doubled his personal fortune in 2006 to $2.3 billion.
He has been an active investor through Eagle, through which he owns his Gome stake and other strategic investments in real estate, pharmaceuticals, securities, information technology and mining.
What he lacks in global investment expertise would be what Bear Stearns and Pacific Star can help make up for.
"We are excited about this opportunity to invest alongside Bear Stearns," said Wong in a statement, "With its tremendous success, especially in the retail sector, Bear Stearns Merchant Banking will contribute to Eagle's success in China. With our years of retail experience in China, I am looking forward to working with the Bear Stearns Merchant Banking team as they extend their successful track record into China."
Bear Stearns' private equity arm is known for retail and consumer investments in the U.S. including Aeropostale, Balducci's, Stuart Weitzman shoes and Vitamin Shoppe.
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