CMIG to create $15b One Belt One Road fund
China Minsheng Investment Group (CMIG), the largest privately-held investment group in China, has initiated a new fund that could raise up to $15 billion for investment in overseas projects under the government-backed "One Belt One Road" initiative.
The Asian Institutional Investor Joint Overseas Investment Fund, which will be managed out of Hong Kong, has a target of $10-15 billion, according to a statement.
It has also brought in an assortment of third-party investors as strategic partners. They include Orix Corporation, Mirae Asset Financial Group, Cukierman & Co, Indochina Capital, BlackPine Private Equity Partners, Sun Hung Kai Financial, AMTD Group, Taiping Financial Holdings, CCB International, GF Investments, Zhongtai International, China First Capital, and Fox Fintech Group.
The vehicle will focus on investment opportunities in areas such as aged care, healthcare, high-end technology, financial technology and emerging industries in developed markets and countries along the Belt and Road – covering China, Southeast Asia, South Asia, Central and West Asia, and the Middle East.
The fund will work under the framework of the Asia Institutional Investor Alliance (AIIA), an organization established by CMIG in last October with a view to bringing together Asian sovereign wealth funds, banks and private equity firms to share resources, especially industry expertise and investment experience.
Annie Wu, a member of Chinese People's Political Consultative Conference (CPPCC), noted in a statement supported by the AIIA, that the fund could help mitigate investment risks and improving fundraising efficiency for Chinese enterprises when they pursue overseas M&A.
Calvin Choi, head of CMIG Hong Kong, added: “The fund could help facilitate cooperation between different institutions. We are hoping to build a global industrial platform by leveraging the strength of Hong Kong, which has diversified fundraising channels in the capital market."
CMIG was founded in May 2014 by the former head of China Minsheng Banking Corp. It aims to become a global financial holding company through strategic investments in financial services and upgrading industrial businesses. The group was launched with RMB50 billion ($7.3 billion) in registered capital from 59 Chinese private enterprises.
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