UOB’S venture management arm in Shanghai has scored an interesting coup, setting up Chongqing’s first Sino-Singapore private equity fund that includes Ping An Insurance.
Targeted to raise up to 100 billion yuan (S$20.9 billion) from investors, the fund will be managed by UOB Venture Management (UOBVM) (Shanghai), Chongqing Yufu Asset Management Group; Ping An Insurance; and Tus-Holdings, which manages the Tsinghua University Science Park. The partners signed an agreement on Monday, UOB said in a media release.
The fund will invest primarily in Chongqing-based projects, focusing on financial services firms looking at cross-border cooperation between Chongqing and Singapore.
It will also look at aviation companies exploring travel between Chongqing and Singapore, and other Southeast Asian countries, as well as transportation logistics firms.
These are areas earmarked as priorities for cooperation under the Chongqing Connectivity Initiative, the third China-Singapore government-led project in China after Suzhou Industrial Park and Tianjin Eco-city.
“The fund will offer companies an alternative financing option to support their growth and to capture more opportunities as China and Singapore continue to deepen their collaboration in driving the Belt and Road initiative, and in developing the western Chinese provinces and cities,” said Seah Kian Wee, managing director of UOBVM (Shanghai).
“We believe that Chongqing’s position as the trading and economic hub of western China will be strengthened as there are now more business and investment prospects in the city. This in turn will lead to greater demand for various sources of financing to suit different working capital requirements for companies’ domestic and overseas expansion plans.”