US-Chinese joint venture in financial services launched

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CHICAGO, Oct 4, (AFP): US and Chinese investors yesterday launched what was touted as the first American financial services group jointly owned by a Chinese company, aiming to work on cross-border mergers and private equity deal.
The formation of HuaMei Capital Company, based in Chicago and Beijing, was announced by US-based investment firms along with China Merchants Securities, part of a banking and investment firm headquartered in Shenzhen.
HuaMei's US principals include former US senator Adlai Stevenson III, chairman of SC&M Investment Management Corporation; and Leo Melamed, chairman of Melamed & Associates. Another investor is MVC Capital Inc, headed by Michael Tokarz, a former general partner with private equity giant Kohlberg Kravis Roberts & Co.
"HuaMei's business is intermediation between different cultures and systems. It is an example of intermediation and mutual benefit to be achieved by cooperation between China and the United States," said Stevenson, who has been active in China since 1975.
"HuaMei is a start-up, but our relations developed in China over many years, in many venues and now with China Merchants, give HuaMei an unequalled potential for execution and origination of transactions throughout China."
Shaolin Gong, HuaMei's co-chairman and chairman of China Merchants Securities Holdings, said the new company addresses demand in China and the United States created by growth in the Chinese economy.
"There are rapidly increasing demands for investment, merger and acquisition among enterprises in China and the US with the continuous growth of China's economy and the constant enhancement of China's competitiveness. Therefore, the formation of HuaMei is a significant event as it is able to offer financial advisory services for those enterprises," said Gong.