Mizuho Securities, a subsidiary of Japan’s second-largest lender Mizuho Financial Group, will establish a technology investment fund in China in partnership with two local venture capital firms, according to a report by the Nikkei.
Mizuho Securities is said to have made an initial $20-million commitment to the fund, which will be managed by Cybernaut Investment Group and New Frontier Capital Management (Hong Kong), in which the Japanese brokerage house is a shareholder.
The new fund will focus on investments in technologies such as artificial intelligence and fintech. Mizuho and Cybernaut expect to expand the portfolio to about $300 million, the report said.
In an attempt to boost its services for corporate clients abroad, Mizuho plans to help Japanese firms partner with and invest in Chinese startups.
Earlier this month, the parent group joined an initiative to support startup businesses through a cooperation with Hong Kong’s Cyberport and the Hong Kong Science and Technology Parks Corporation. Under the agreement, the parties will assist Japanese and Hong Kong startups in entering the two markets, participating in business demonstration events, pursuing R&D, as well as facilitating investments.
Mizuho said the partnership will contribute to the economic development of Japan and of the Greater Bay Area encompassing Hong Kong, Shenzhen, and Guangzhou.
In October, Mizuho also sealed a deal with China Investment Corporation, Nomura Holdings, Daiwa Securities Group, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, to set up a private equity fund to finance Japanese companies entering the Chinese market and Japan-China joint ventures.