China Reform Holdings, a government-controlled group that manages a $30billion fund, launched last year. They are trying to revitalize China’s decreasing industrial sector with venture capital-style investments. The fund is backed by several state banks which include China Postal Savings Bank and China Construction Bank.
Now, they are hoping to invest at least 2 billion dollars with the Beijing-based private equity group JD Capital. JD Capital made its first major overseas acquisition in 2015, buying Ageas’ Hong Kong insurance company for $1.4 billion.
As Shen Jianguang, the chief economist at Mizuho Securities Asia said, “It’s an experiment to see how state enterprises manage their money.”