The Rise of the China-Focused Private Equity Giant Hillhouse

The recent rout of U.S.-traded Chinese stocks has shone a spotlight on Hillhouse, a China-focused investment heavyweight that has likely suffered heavy losses.

Hillhouse’s situation shows how China’s investment environment has entered an era of regulatory uncertainty.

The market is now watching how the investment juggernaut will cope. Founded by legendary investor Zhang Lei in 2005, Hillhouse has grown into one of Asia’s biggest investment companies, fueled by some famous investments including in Tencent Holdings Ltd. and JD.com Inc.