On March 31, Cathay Capital, L’Oréal China, and the Jing’an District Government of Shanghai jointly announced the establishment of the “Cathay Future Beauty Fund.”
With a global industry perspective, the fund focuses on investing in innovative trends and high-value categories related to “beauty” in the domestic market. It is committed to identifying and supporting a new generation of leading companies that combine efficacy, scientific advancement, and the ability to define aesthetics with Chinese characteristics, aiming to jointly drive the Chinese beauty and skincare industry into a new era of high-quality development.
Mingpo Cai, Founder and Chairman of Cathay Capital, stated, “Our partnership with L’Oréal is built on years of mutual trust and successful collaboration across multiple projects. Together, we have witnessed and promoted the innovation and upgrading of China’s beauty industry. The launch of the Cathay Future Beauty Fund not only marks a further deepening of our strategic partnership with L’Oréal but also enjoys the strong support of the Jing’an District Government, underscoring our firm confidence in the long-term development of the Chinese market. Looking ahead, we will leverage our respective strengths to deepen and broaden China-France cooperation, help more Chinese brands go global, and jointly shape the future of beauty.”
Fabrice Megarbane, President of L’Oréal North Asia Zone and CEO of L’Oréal China, said, “Investing in China is investing in the future. This collaboration reflects our ongoing commitment to co-creating with the Chinese beauty ecosystem and achieving mutual success. With L’Oréal’s market leadership in beauty, Cathay Capital’s investment expertise, and Jing’an District’s strong experience in driving consumer trends, we are confident in advancing truly consumer-centric investments and supporting the flourishing development of emerging Chinese beauty brands and related industries in China and globally.”
Zhong Xiaoyong, Secretary of the Jing’an District Committee of Shanghai, said, “The establishment of the Cathay Future Beauty Fund is a new initiative in the development model of Jing’an’s industries and a breakthrough in the development of Shanghai’s ‘Beauty Economy’. We sincerely look forward to the complementary strengths and sincere cooperation of the three parties, maximizing the fund’s leverage on the beauty industry and its role in incubating innovative outcomes. At the same time, we also hope that L’Oréal and Cathay Capital will make full use of their brand advantages and platform functions to connect more beauty enterprises and innovative projects with Jing’an. The Jing’an District Committee and Government will make every effort to create a favorable environment, provide advantageous conditions, and deliver high-quality services for the operation and management of the fund. Together, we will work hard to create a bright future of mutual benefit and shared success.”
China’s market is undergoing a profound consumer transformation, with the beauty industry being one of the most emblematic. Distinct preferences across consumer groups, regions, and city tiers are pushing the market toward greater segmentation and differentiation. At the same time, both online and offline beauty channels are undergoing rapid evolution. Content dissemination is becoming increasingly fragmented, and consumers are accessing brand information through more diverse pathways. This raises the bar for brands—they must possess not only deep consumer insight but also strong content innovation and brand expression capabilities to win consumer mindshare in an increasingly competitive market.
Meanwhile, the rise of local raw material and R&D capabilities is laying a more solid foundation for innovation across the entire personal care industry. From biotechnology to green ingredients, from synthetic biology to precision skincare, a growing number of Chinese companies are playing key roles in the global value chain. Cathay Capital remains optimistic about the industry’s transformation driven by technological prowess, efficacy, and branding, and will continue to support outstanding companies leading this structural shift to enhance their global competitiveness. However, what may ultimately define the future heights of China’s beauty industry is the cultural confidence and aesthetic expression embedded in a new generation of brands. As Gen Z and younger consumers increasingly embrace Eastern aesthetics, the market urgently needs more brands that represent Chinese culture, distill Eastern beauty, and earn a place in the global market. This goes beyond product innovation; it involves shaping brand values, innovating storytelling, and reshaping global perceptions of Chinese aesthetics. Cathay Capital hopes to be a catalyst in this transformation, supporting the rise of a new generation of Chinese beauty brands with global vision, cultural confidence, and international influence—so the world can witness beauty that truly originates from China.
“All for Beauty, Beauty for All.” We are not just investing in beauty—we are shaping the future of beauty.
｜Source: Official press release from Cathay Capital
｜Image Credit: Official press release
｜Editor: LeZhi
