The Agricultural Bank of China is partnering with the Chinese city of Wuxi on a 15 billion yuan ($2.3 billion) private equity fund to invest in high-growth sectors such as logistics and energy conservation, Reuters reported Wednesday. The Agricultural Bank of China is the country’s third-largest lender by assets. The fund will be based in Wuxi, which is near Shanghai.
(Reuters) – Agricultural Bank of China has launched a 15 billion yuan ($2.3 billion) private equity fund with the Chinese city of Wuxi to invest in high-growth sectors such as logistics and energy conservation, the bank said on Wednesday.
The country’s third-biggest lender by assets said the first phase of capital injection into the fund, which will be based in Wuxi, near Shanghai, will amount to 5 billion yuan.
“AgBank (Wuxi) Private Equity Fund has combined AgBank’s financial strength and Wuxi’s strength in various industries,” AgBank said in a statement posted on its website.
Chinese banks are rushing to join global players such as Morgan Stanley in setting up China-focused private equity funds to tap the country’s booming economy.
Last year, an investment arm of Bank of Communications, China’s No. 5 lender, said it aimed to raise $250 to $500 million for a private equity fund focused on investing in China. ($1 = 6.470 yuan)
(Reporting by Soo Ai Peng; Editing by Jason Subler and Yoko Nishikawa)