Taiwanese financial holding company Fubon Financial is planning to set up an RMB-denominated fund in partnership with China’s state-run China Development Bank (CDB) and the Fujian provincial government.
The deal will see the three entities inject a total of RMB5 billion (€545.5 million; $732.4 million) into the fund, with 40 percent of capital contributed by Taipei-based Fubon, and 30 percent from each of the two Chinese parties, according to media reports. The fund will target businesses with operations in both China and Taiwan across multiple sectors, the reports added.
In response to media reports, Fubon confirmed that it is preparing a cross-strait investment fund, but declined to provide further information.
Fubon Financial is a diversified financial conglomerate with interests in banking, securities, asset management, insurance and venture capital consulting.
In 2009, it was reportedly one of the parties bidding for Taiwanese insurance company Nan Shan Life Insurance, alongside the likes of Cathay Financial Holding Company, Chintrust Financial and private equity firms including The Carlyle Group, Bain Capital, MBK Partners and Primus Financial Holdings. The company was ultimately acquired by Primus for a consideration of $2.15 billion.
In September 2009, CDB set up a Beijing-based investment unit, China Development Financial Company, focused solely on private equity. CDB was to transfer all non-financial equity assets to China Development Financial Company, according to a statement it released then. These includd shareholder stakes in private equity funds Bohai Industrial Investment Fund, China-Africa Development Fund, China-ASEAN Investment Fund, China-Italy Mandarin Fund and China-Belgium Direct Equity Investment Fund.
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