China-based oil, gas and chemicals supplier Sinopec has formed an investment firm called Sinopec Capital that will be equipped with RMB10bn ($1.48bn) of capital.
Sinopec Capital will invest in emerging areas such as new energy, advanced materials, artificial intelligence and smart manufacturing and supply chain technologies.
Although Sinopec has not stated directly that the vehicle will invest in startups, its activities will cover equity investments and management as well as project investments and asset management.
The fund will get 49% of its capital from oil and gas refiner Sinopec Corp and the remaining 51% from parent company Sinopec Group, which also produces a range of petroleum-related products. Both parties have agreed to make their full commitments by the end of 2020.
State-owned Sinopec had not previously disclosed any corporate venture capital investments. Sinopec Capital’s formation was announced at roughly the same time as US-based electronics producer Apple pledged $300m for a fund that will invest in Chinese renewable energy projects.