China New Era Technology Fund

History

2018: Start of fund

At the beginning of July, 2018 it became known of creation in China of fund of investments into information technologies. It became the answer to the similar project of the Japanese telecommunication giant SoftBank — Vision Fund.

According to the Financial Times (FT) newspaper, an initiative under the name China New Era Technology Fund is started by the Chinese state conglomerate China Merchants Group together with the London Centricus investment group and other unnamed Chinese companies. The volume of fund is 100 billion yuans (about $15 billion at the rate of for July 2, 2018) from which 40 billion yuans will be provided by the Chinese side.

China created fund of investments into IT for $15 billion

China New Era Technology Fund is created generally for investment into the IT companies of Celestial Empire, also transactions at the global level will be considered however that can draw attention of the authorities of the western countries which are more and more concerned and frankly speak about communication of the government of the People's Republic of China with the technology companies.

Centricus together with the small Beijing company SPF Group managing the capitals will be engaged in attraction of the remained 60 billion yuans from the government organizations, the universities and the technology companies.

FT notes that China New Era Technology Fund is started how world investors try to raise more and more funds for the competition to SoftBank fund which volume is nearly $100 billion. The Vision Fund project changed traditional approach of investment into the IT sector through venture capitals, having focused on selection of huge investments in startups.^[1]

Technology revolution takes place much quicker, than it was expected. It creates a big race for investments in this market. We are at a stage when the volume of the available funds and the accessibility to the large markets change a situation radically — the head of Centricus Dalinc Ariburnu said.

Notes