Strategic partnership aims for China financial services opportunities

AIM-quoted China Private Equity Holdings Ltd (CPE; Ticker CPEH) has agreed a US$6 million strategic partnership intended to exploit the rapidly-growing demand for online financial services in the Chinese market.

It plans to issue 10 million new shares at US$0.60 per share to acquire a 30% stake in Enfinium, a Hong Kong-based online financial broking and trading platform. The shares will be issued to privately-held Furuya Consultants Ltd, which currently owns 100% of Enfinium.

CPE Chief Executive Duncan Chui said: “This new agreement marks a further important step forward for CPE, in line with our objectives of providing an attractive return on investment through capital appreciation. We anticipate that CPE’s public fundraising capabilities will assist Enfinium to extend its own expansion into a Chinese financial services market still undergoing rapid development against a backdrop of target GDP growth for 2011 of 7%.”

CPE seeks attractive returns by investing in businesses in China seen as likely to achieve a medium or long-term trade sale or IPO. A Hong Kong IPO is planned in the near future for CPE’s significant investee company, Fortel, a digital media and technology services company operating primarily in China and in which CPE holds a 37% stake.

The new agreement follows a US$2 million investment last November in a US$2 million strategic investment in China iEducation Group, a developer and distributor of content to Chinese elementary and middle schools. It consolidates CPE’s core strategic presence in the online, technology-media-telecoms and financial services sectors.

Enfinium provides its clients with a global online trading platform that allows them to trade stocks on most of the world’s stock exchanges, along with forex, futures and other transactions. It has a wide network of High Net Worth investors who are seeking access to Chinese investment opportunities such as those sourced by CPE.

CPE has also agreed to issue an additional 2 million shares to FCL if Enfinium achieves a net audited post-tax profit of US$ 3.5 million or more for the year ending 31st December 2011. CPE will take a seat on the Board of Enfinium.

For further information contact:
Duncan Chui, China Private Equity Investments Holdings Ltd: +852 2801 6770
Ernest Wong, China Private Equity Investments Holdings Ltd: +852 2801 6770
Stephane Auton, Shore Capital and Corporate Ltd: +44 (0) 20 7408 4090
Allan Piper, First City Public Relations (Hong Kong): +852 2854 2666
Simon Hudson, First City Public Relations (London): +44 (0) 20 7920 3170