Of Special Interest

26th July 2011

Rothschild investing Chinese funds in other countries

J. Rothschild Creat Partners intends to raise Y5bn (€539m £476m $776m ¥60.8bn)in China to invest in other countries this year. The joint venture between RIT Capital Partners, Creat Partners and Quercus Associates in only the second time the authorities in China have permitted a fund to raise Renminbi (Yuan) in China with the intention to invest abroad.

RIT Capital remains chaired by Lord Jacob Rothschild, now 75 years old.
Rothschild's in various guises has been trading in China since the 1830s and it is believed that it was Lord Jacob's personal involvement that persuaded the authorities to grant the necessary permissions. China's stock markets are currently depressed and inflation is above interest rates creating a difficulty for those seeking to gain a return on their money by investing domestically. It is also perhaps a sign of the central authorities gradualist approach testing the advantages of such funds on a relatively small scale.