China-based telecommunications company China Mobile is set to form a joint venture capital fund with Chinese state-owned fund State Development & Investment Corporation (SDIC), China Money Network reported today.
The fund will eventually be sized at about RMB 5bn ($806m), according to a regulatory filing, and will look to invest in China-based, growth-stage and mature mobile internet startups.
China Mobile will provide RMB 1.5bn ($242m) in capital, while SDIC will supply RMB 1bn. The remaining funds will be raised from third-party backers.
China Mobile was founded by the Chinese government and floated on the New York Stock Exchange in a $4.2bn initial public offering in 1997. It has a majority share of the country’s mobile telecommunications market, having accumulated 807 million customers by the end of 2014.