CDH Investments and Hony Capital will launch domestically registered RMB funds respectively. Reportedly, the fund-raising of the two funds has entered the final phase and will be completed in late May, each of which is of an initial size of RMB5B; large-scale institutions including the social insurance funds will contribute capital for the two funds.

If all goes smoothly, the two funds will become the largest-ever RMB funds initiated and raised by the managers with foreign PE firms.

The great achievements CDH and Hony Capital made played a crucial role for them to raise large-scale funds in China. Specifically, CDH invested Mengniu Dairy, Belle International and other privately owned companies with hi-growth prospects; Hony Capital has raised three funds since its launch in 2003, and managed over RMB5.5B, so far it had invested 18 projects. Moreover, the investment return for the two firms far outstripped the market average.