China-based internet company Tencent is set to form a joint venture with equities investment firm Hillhouse Capital Management, China Money Network reported on Saturday citing local media reports.
The division of equity in the fund will be set 60-40, though it is currently unclear as to which investor will be providing the greater amount of money or how much will be committed.
Qiu Guolu, previously the investment director of fund manager China Southern Fund Management, will serve as chairman for the fund, while Hillhouse founder Zhang Lei will be its general manager.
Tencent and Hillhouse previously formed a joint venture in Indonesia in February 2013 with media company MNC Media and both companies are also investors in online direct sales company JD.com.
Hillhouse owned a 13% stake in JD.com prior to its May 2014 flotation, while Tencent invested almost $215m for a 15% stake in JD.com two months before.