E-Tech Plans PE Venture with China’s Yufu

SHANGHAI (Reuters) – U.S. asset manager E-Tech Capital and China’s Chongqing Yufu Assets Management Co plan to set up a private equity joint venture firm that aims to launch a 5 billion yuan ($731 million) fund, two people familiar with the situation said on Wednesday.

The new fund plans to raise about 2 billion yuan from overseas, with the remainder coming from domestic investors, the sources said.

Yufu is a state asset manager affiliated with the regional government of Chongqing in western China.

E-tech is an Asia-focused firm with $2 billion of assets under management. (US$1=6.832 Yuan)

(Reporting by Helen Ding and Edmund Klamann)