PE firms turning to alternate channels

Private investors in China are turning to alternate channels for assured cash returns, as the once-favored initial public offerings market has turned sluggish, industry sources said on Friday.

"We are facing mounting pressure," said Jin Angsheng, partner of CDF Capital, a Shenzhen-based private equity firm. "While the large organizations are not keen on short-term returns, small and medium-sized investors - rich families and individuals who invested less than 20 million yuan ($3.25 million) during the private equity boom in 2010 - are determined to take their money out."

Ma Jun, COO and managing director of CV Capital LLP, a corporate finance specialist, said there would be about 150 IPOs in the Shanghai and Shenzhen bourses this year, according to market estimates. "Given the record so far, it's quite unlikely that the target would be reached by the end of the year," he said.