JD Capital Funds Tsinghua University in Establishing a Research Center on Global Acquisition and Reo

2016-09-26

Over the past five years, a total of RMB 30 million has been invested by China Oceanwide, Wudaokou Investment and JD Capital to establish a research center on global acquisition and reorganization under the National Institute of Financial Research, Tsinghua University. The intention is to fast-track China’s entry into the global M&A era.

On September 21, the unveiling ceremony of the Research Center on Global Acquisition and Reorganization of the National Institute of Financial Research, Tsinghua University was held, with attendees including WU Xiaoling, President and Dean of Tsinghua PBC School of Finance (PBCSF), ZHOU Yanli, Vice Chairman of China Securities Regulatory Commission, and LIAO Li, Executive Vice Dean of PBCSF.

Establishment of the Center cost RMB 30 million, among which RMB 5 million was invested by JD Capital and another 25 by China Oceanwide and Wudaokou Investment in the last five years. Besides, the three parties plan to set up positions for chair professors and establish scholarships to attract accomplished finance professors from both home and overseas and to award outstanding postgraduate students and doctoral candidates.

Chairman and JD Capital CAI Lei unveiling the nameplate with various guests

(Left to right: ZHU Ning, Director of the Research Center on Global Acquisition and Reorganization, GU Liangfei, Secretary of the Party Committee of PBCSF, LIAO Li, Executive Vice Dean of PBCSF, WU Xiaoling, President and Dean of PBCSF and Deputy Director of Finance and Economy Committee of the NPC, YU Zheng, Executive Director of China Oceanwide, ZHOU Jianmin, Chairman of GoldenSun Group, CAI Lei, Chairman of JD Capital, CHEN Jijian, Vice President of China Oceanwide and Chairman of the Supervisory Board of Minsheng Securities, and XU Jianbing, Director and Vice President of China Oceanwide.)

In recent years, fueled by the country’s economic transition and the “one belt, one road” initiative, China’s M&A transaction volume has set numerous record highs. In H1 2016, China’s M&A transaction value (domestic and overseas) reached USD 412.5 billion, registering a year-on-year increase of 27%.

The sharp increase in cross-border transactions presents plenty of growth opportunities but also challenges for Chinese enterprises. They will face potential risks due to political, legal and cultural differences as well as information asymmetry. The Center, as a global exchange platform, purports to build itself into a first-class research institute of its kind both in Asia and the world.

Looking forward, JD Capital, together with its partners, will exploit their advantages and integrate resources to support academic research of the Center, thus helping Chinese enterprises get engaged in the big global surge of M&A businesses.