China Minsheng Investment Launches With $8B Investment Vehicle

China’s first national-level private investment fund, the RMB50 billion (US$8 billion) China Minsheng Investment, was officially launched last week to take advantage of the Chinese government’s effort to open more sectors to private investment, according to a public announcement.

Endorsed by China’s State Council in April, China Minsheng Investment’s RMB50 billion registered capital was contributed by 59 large-sized private Chinese companies, including Nanjing-based electronic appliances retailer Suning Appliance Company Limited.

Former chairman of China Minsheng Banking Corp., Dong Wenbiao, will be the chairman of the investment vehicle.

With a focus on China’s domestic market, China Minsheng Investment plans to set up several subsidiaries in key industries including new energy, international transportation, real estate and logistics.

It will also set up London and Hong Kong offices, seeking to work with overseas financial institutions on deals.

The effort to establish China Minsheng Investment was initiated by the All-China Federation of Industry and Commerce, a non-governmental entity that serves as a bridge between the private sector and government.

It is the second national-level investment company after China’s sovereign wealth fund, China Investment Corp.