China’s Haitong Securities Plans $1.5B Fund

China’s Haitong Securities Co. is planning a 10 billion yuan ($1.5 billion) fund to aid overseas expansion by domestic companies, Reuters reported. The fund will help companies such as Bright Food Group with international growth, and will be managed threw Haitong’s private equity unit, Reuters said.

(Reuters) – Haitong Securities Co., China’s second biggest listed brokerage, plans to launch a 10 billion yuan $1.5 billion) fund to aid overseas expansion by domestic companies such as Bright Food Group, a person with direct knowledge of the situation said.

Haitong’s new fund, which has support from the Shanghai government, is expected to be worth 3 billion yuan initially, and aims to grow to 10 billion yuan over time, said the source, who declined to be identified because the information is not public.

A spokesman at Haitong was not immediately available for comment.

Haitong, which is 6 percent owned by Bright Food, will manage the fund through its private equity unit, and has committed 1 billion yuan of investment to the fund, the source said.

The plan comes amid a growing number of high-profile acquisitions by Chinese firms in recent years, including Geely’s purchase of Volvo and Bright Food’s investment in Synlait Milk Ltd. ($1 = 6.475 yuan)

(Reporting by Samuel Shen, David Lin and Kazunori Takada)