Hongye’s $100m PE investment heralds new California-China partnership


california_170sqChina’s Hongye International has agreed to invest $100m of private equity capital into California-based Singpoli Capital to develop green energy, biochemistry, media, high-tech and real estate construction projects.

The deal was announced as part of the opening of the California-China Office of Trade and Investment, which will serve as a two-way investment hub between the US state and the Asian powerhouse.

Bay Area Council president and CEO Jim Wunderman said, “The California-China Office of Trade and Investment ushers in an exciting new era of cooperation and partnership between two of the world’s largest economies.

“This office will provide California with a valuable and necessary portal for attracting Chinese investment and expanding trade.

“Some estimates suggest China’s foreign direct investment may reach $2tn by 2020 and this trade office says clearly that California is ready to do business, and that we want a big piece of that pie.”

Wuhai-based Hongye makes investments across sectors including residential development, mining, manufacturing and tourism.

Singpoli’s core business is real estate investing, although it also covers wealth management, construction, and recently launched Singpoli Energy to enter the environmentally-friendly LED market.

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