Seeking to bring Swedish technology and research to China, the Shenzhen Investment Holdings Co Ltd, and Sweden Innovation and Development Group have jointly launched a China-Sweden Technology and Innovation Fund with a total fundraising target of $1.45 billion (RMB10 billion).
Called the Infotech National Emerging Industry Investment Guidance Fund, it has been registered in Shenzhen’s Longgang district, and successfully completed first closing of $872 million, the China Money Network reported.
The Shenzhen-based state government guidance fund will focus on investing in mature technologies in Sweden, including those in life sciences and the general healthcare sector, to help them enter and grow in China.
A total of 80 per cent of the capital will be used in making early and mid-stage investments in new and emerging industries, while 20 per cent will be earmarked for late-stage investment in these industries.
Among the vehicle’s limited partners are anchor investments from the central government’s fiscal budget, also state-owned and private companies as well as Postal Savings Bank of China Co Ltd, Shenzhen Longgang Financial Investment Holdings Ltd, Anhui Province High-Tech Industry Investment Co Ltd, Hefei High-Tech Construction Investment Group and Henan State Land Asset Management Co Ltd, the CMN report added.
The investment strategy is likened to earlier funds geared to combine China’s market, capital and consumer demand with advanced technology from other countries including Israel, the US, France, and Germany.
Established in 2000 with offices in Beijing, Shenzhen and Shanghai, Infotech now has $1 billion under management. The company has made 47 direct investment in Chinese technology companies including Beijing-based video technology supplier Vimicro, Guanzhou-based currency recognition and cash processing solutions provider GRG Banking, and Gansu-based integrated circuit packaging company Tianshui Huatian Technology Co Ltd.