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(BEIJING TODAY) Rothschild targets China

COMMENT - See here for the book Currency Wars 2, by Song Hong Bing.

Rothschild targets China
July 29, 2011
By Yao Weijie

Lord Jacob Rothschild, the chairman of RIT Capital Partners and the focus of the famous Chinese book Currency Wars, traveled to Beijing this week to promote the JRC private equity fund that will raise the yuan in China and allow Chinese investors to invest overseas.

Rothschild wants to raise $750 million through the fund. It is being operated under the strategy of “raising domestic, investing overseas.”

It is difficult for Chinese individuals and companies to invest overseas because of tight Chinese capital and currency controls. The capital markets have been opening up gradually to allow private enterprises to invest in overseas companies and create opportunities for these companies to enter the Chinese market, but the process has been slow.

The JRC fund, which is a joint venture between RIT Capital, Chinese investment group the Creat Group and investment advisory company Quercus Associates, is one of only two funds that have gained regulatory approval.

“In addition to the $100 million seed funding, the remaining $650 million of the JRC fund will come from Chinese private enterprises. The fund will focus on various sectors in European and American countries, including pharmaceuticals, bio-technology, clean energy, high-end equipment, environmental protection and IT technology,” said Rothschild in last week’s speech at Peking University.

Industrial output is only 3 percent of GDP in China now, which will increase to 20 percent before the end of 2020. “This unique venture will allow China’s private sector to invest in Western companies, while providing opportunities for Western companies to enter China’s rapidly growing and vibrant economy,” said Rothschild when the fund was announced in March.

Some scholars think there are many other benefits as well.

“The Chinese government took many measures to reduce the influence of inflation. The Central Bank has increased interest rates three times and raised the reserve ratio six times during the first half of 2011. The policy took effect and inhibited overheated investment. In this condition, investing idle funds to overseas projects is a good choice,” said Yu Huayi, Professor at the School of Finance of Renmin University.

The first time the Rothschild family came to China was in the 1830s. They operated a small business trading gold and silver out of Shanghai. Today the name is famous in China not only because of Chateau Lafite, the Rothschild wine in high demand among rich Chinese, but also because of the Chinese book Currency Wars, in which the Rothschild family are the main characters.

Labels: CHINA, NEOCOLONIALISM, OLIGARCHIES

posted by MrK @ 11:42 AM