BEIJING, Dec 20 (Reuters) - CDB Capital, a unit of China Development Bank [CHDB.UL], said on Monday that it will launch a 60 billion yuan ($9 billion) fund of funds to support the country’s fledgling private equity and venture capital firms.
The fund of funds, the first of its kind set up by a state-owned entity, would include 40 billion yuan for private equity and 20 billion yuan for venture capital, they said.
CBD Capital was in the process of bringing in the national pension fund and some state-owned insurers as initial investors, executives said.
The yuan-denominated fund, which aims to raise an initial 15 billion yuan this year, will be closed by the end of 2011.
CDB Capital has partnered with Suzhou Industrial Park, originally a venture between Singapore and the southern city of Suzhou, to establish the fund, which will have a 12-year lifespan.
CDB capital, which was established in August 2009, is the only Chinese financial firm that has a licence to make equity investment, reflecting the powerful status of China Development Bank, which owns part of Barclays Plc BARC.L. ($1=6.654 Yuan) (Reporting by Kevin Yao; Editing by Chris Lewis)
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