China debuts $7.6b FoF for culture industry; Shanghai sets up $1.5b vehicle

Shanghai, China

China has introduced a 50 billion yuan ($7.6 billion) fund of fund (FOF) to invest in its culture industry, while Shanghai has set up a billion-dollar industry investment fund for smart manufacturing investments.

China debuts $7.6b FoF to invest in the culture industry

China has launched a fund of fund (FOF) to invest in the country’s culture industry with a targeted fund size of 50 billion yuan ($7.6 billion), the government announced on Thursday.

The fund, dubbed “China Culture Industry Investment Fund of Funds,” has reached its first closing at 31.7 billion yuan ($4.8 billion). It was officially launched on November 18 in Beijing by government bodies including China’s ministry of finance and the Publicity Department of the Central Committee of the Chinese Communist Party.

The FoF, which will hold a portfolio of other investment funds rather than making direct investments in companies, plans to invest in areas including news & information services, integrated media development, and new-generation, digital cultural businesses, as well as the tourism, sports, and film industries.

The vehicle will support mergers and acquisitions (M&A), and the restructuring of enterprises in the culture industry, in an attempt to facilitate the integration of cultural resources and to promote the industry’s structural adjustment.

The vehicle, says the government mouthpiece Xinhua News Agency, is “a significant move in forging a modern culture industry and developing a great socialist culture in China.”

Shanghai sets up $1.5b fund for smart manufacturing

The financial hub of Shanghai has set up an industry investment fund to raise an aggregate 10 billion yuan ($1.5 billion) for investments in smart manufacturing, local media reported on Thursday.

The vehicle, which has hit the first closing at 3 billion yuan ($455.3 million), will mainly invest in the smart manufacturing industry in the Yangtze River Delta, a metropolitan region in eastern China centred around Shanghai, covering provinces like Jiangsu, Zhejiang, and Anhui.

The fund will also look into businesses in northern China’s economic zone — Beijing, Tianjin, and Hebei — as well as southern China’s Pearl River Delta.

“Apart from advanced manufacturing, the fund will invest in smart city projects, AI, and other related businesses. It will provide value-add services to portfolio companies and help them grow faster to tap the capital market,” said Wei Feng, founding partner of fund management firm Coco Capital, cited by local publications. Coco Capital has helped co-launch the fund.

The creation of the billion-dollar vehicle underscores the local government’s efforts to promote tech development in the city. In June, the Shanghai government had introduced a scheme, targeting to incubate 10 world-class smart manufacturing solutions providers and to rope in an additional 30-billion-yuan ($4.6 billion) investment in its tech sector by 2022.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.