Two Chinese state-owned companies – diversified conglomerate Yuexiu Group and insurer People’s Insurance Company of China – are forming a RMB3bn ($424m) industry investment fund, DealStreetAsia reported today.
The firms are collaborating on a series of fund partnerships targeted at China’s Greater Bay Area, which includes the cities of Guangzhou, Zhongshan and Shenzhen and special administrative regions Hong Kong and Macau, that will collectively top $1.4bn of investment.
Yuexiu’s asset management subsidiary, Yuexiu Industrial Fund, will manage the fund, which is expected to be followed by US dollar and Chinese renminbi-denominated joint fund-of-fund initiatives which will back ‘strategically important’ companies in the area.
Another government-controlled corporate, insurance provider Taiping, established a $1bn investment fund targeting the Bay Area in January this year, with investment banking group China International Capital Corporation’s CICC Capital unit.
The latest initiative comes after mobile game publisher Beijing Kunlun Technology and investment manager Beijing Huayu Tianhong formed a RMB3bn investment fund earlier this week.
