While You Were Worrying About the Tech Bubble, Wall Street Went to China

Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group Inc., speaks at the CARE conference in Washington, D.C., U.S., on Wednesday, March 9, 2011. Blankfein agreed to be a prosecution witness in Galleon Group LLC co-founder Raj Rajaratnam's insider trading trial this week, said a person briefed on the matter. Photographer: Andrew Harrer/Bloomberg via Getty Images Photo: Bloomberg/2011 Bloomberg

Morgan Stanley just announced it will be following Goldman Sachs, Blackstone, and Carlyle in their recent forays into China's booming private equity market by attempting to raise $230 million for its own yuan-dominated private equity fund in the affluent city of Hangzhou. (Lloyd Blankfein, whose mastery of one-upmanship even translates overseas, is aiming for $770 million.) Western banks and buyout firms are turning to yuan funds since China places less restriction on money raised from domestic Chinese investors. Did Wall Street just find another "white elephant, flying pig, and unicorn all at once"? [Reuters, WSJ]