China’s colossal BATJ drives private equity market

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A China yuan note. File photo: Reuters/ Thomas White

China’s private equity market has once again consolidated its position as the largest market in the Asia Pacific region, accounting for more than 50% of the entire Asia Pacific market, according to a report published by a Boston-based global management consultancy Bain & Company, The Paper reported.

In 2017, the transaction volume of the Chinese market reached the second highest in history, recording US$73 billion. The number of withdrawal transactions soared significantly, creating a historical record of 393 deals, which means market liquidity has also increased.

In the entire competitive landscape of China’s private equity market, there is a large amount of alternative capital that directly participates in transactions, said Kiki Yang, Bain & Company’s global partner.

Part of the alternative capital comes from continuously active BATJ —which stands for Baidu, Alibaba, Tencent and JD.com — the four Internet giants. Their investment volume reached US$10.8 billion and involved 38 deals in 2017.

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