China Everbright Limited, a subsidiary of state-owned China Everbright Group, announced that it has tied up with a slew of Suzhou-based financial groups to set up a 10 billion yuan ($1.42 billion) Yangtze River Delta-focused innovation fund.
The debut phase of the vehicle closed at 1.5 billion yuan ($212 million) raising capital from investors namely Everbright, Suzhou Wujiang Orient State-owned Capital Investment Management and Suzhou Qianrong Group, it said in the statement.
The agreement was forged at the China Wujiang Yangtze River Delta Area Collaboration Summit held in Shanghai in July 2019.
Everbright’s FoF arm will manage the fund. Everbright claims that the fund will significantly contribute to the integration of the Yangtze River Delta, a national strategy initiated by the Chinese government in 2018 to bolster regional growth in the region.
The proceeds will be deployed into emerging industries in Wujiang district across innovation-oriented sectors including high-end equipment, new materials, energy, environment protection and biomedicine. Besides, the fund will also target investments in smart manufacturing, big data, cloud computing and artificial intelligence.
Headquartered in Hong Kong, asset management giant Everbright has over 20 billion yuan ($2.8 billion) in FoF assets under management through its sub-funds. Everbright’s FoF primarily invests in funds focused on TMT (technology, media and telecom), healthcare, smart manufacturing, consumption, entertainment and new energy.