China launches $15b internet investment fund

The vehicle, known as China Internet Investment Fund, has received initial funding of RMB30 billion from several Chinese corporates, according to a statement. They include Industrial & Commercial Bank of China (ICBC), CITIC Guoan Group, China Post Life Insurance, China Mobile, China Unicom and China Telecom.

Several financial institutions – ICBC, China Development Bank and Agricultural Bank of China – have also agreed to provide RMB150 billion worth of loans to the fund’s portfolio companies.

The government-guided fund, which was approved by the State Council, will adopt a market-oriented strategy to invest in disruptive internet technology, CAC said in the statement.

Two years ago, the State Council announced an establishment of a government-guided VC fund worth $6.5 billion to support start-ups in emerging industries. In August last year, Chinese Reform Holdings Corporation, which is backed by the State-owned Assets Supervision and Administration Commission (SASAC), also launched a government-backed VC fund with a target of $30 billion.

China VC fundraising reached a record $17 billion in 2016, comprising vehicles that reached partial or final closes. Of this, $14.5 billion went towards the first close of the Chinese Reform Holdings Corporation fund. It is estimated that there are 1,000 renminbi fund-of-funds in China and 60% of them have state support, with total assets of RMB1.5 trillion.

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• Topics
• Greater China
• Venture
• Fundraising
• Technology
• Renminbi fund
• China
• TMT
• LPs