Private-Equity Funds Turn to Yuan Offerings, Defying Wider Slowdown in China

Yuan-denominated funds are getting demand from a mix of local and international investors. HONG KONG—Some international private-equity firms investing in China are choosing to denominate new funds in the country's local currency, going against a wider slowdown in global demand for bets on Chinese startups. The appetite for allocating capital to funds focused on China has waned over the past year, the result of factors including tensions between Beijing and Washington, higher U.S. interest rates and a prolonged crackdown on China's once-hot internet sector.