London-based Ecofin has launched a China power and infrastructure fund to invest in equities of major companies.
In a statement, the firm said there were “compelling risk-adjusted returns” on offer in Greater China and that the Ecofin China Power & Infrastructure Fund would benefit from the Chinese government bei ng in the midst of a massive upgrade of the country's infrastructure. This upgrade focuses on transportation network, renewable energy, and utility generation and distribution.
“The build-out of China's infrastructure and the transformation of the country's energy consumption mix will be among the most important global investment themes in the years to come,” said Ecofin.
China has a $586 billion stimulus spending package with the majority going into infrastructure and energy.
The fund is not a closed-ended vehicle taking stakes in private vehicles, but is an open ended fund that will acquire shares in mainly large cap stocks and will have monthly liquidity with 30 days redemption notice.