The Involvement of Private Equity Fund into Chinese Mining Industry Investment

Abstract

Diversification of Chinese mining assets capital market financing structure is achieved through the establishment of private equity financing platform and private equity fund with the introduction of private or international capital into the mining sector. These measures solve the core problem of difficulties in mining industry financing. For China state-owned mining enterprises, these measures accelerate the reformation and progress of operating mechanism and optimize the equity structure. This paper focused on analysis and discussion of private equity financing involvement in Chinese mining industry investment. The operation model, organization structure and strategy in mining industry investment of the private equity fund were analyzed. Lastly, advice on private equity fund investment to mining sector was given.