In August 2009, Blackstone signed an agreement with the Government of Pudong, China, to establish the firm’s first regional private equity fund denominated in the Renminbi (RMB) currency. The Shanghai Blackstone Equity Investment Partnership (Limited Partnership) will make priority investments in the Shanghai Pudong New Area, a major focal point for the Chinese government’s plans to develop a leading international finance and shipping center in the region as well as in other regions in China.
It is expected that the Shanghai Blackstone Equity Investment Partnership’s activity will help to stimulate and support additional foreign and domestic investment in financial, transportation and industrial enterprises in the Shanghai Pudong New Area, and thus contribute to the economic transformation of the region.
The new RMB-denominated fund reflects Blackstone’s strong confidence in, and deep commitment to, investments in China, as well as its ability to develop constructive partnerships with national, regional and local authorities. The state investment company of China made a $3 billion investment in Blackstone at the time of the firm’s IPO, giving further evidence of the firm’s connection to the Chinese market.