Shanghai-based conglomerate Fosun International said yesterday it planned to form a 1.5 billion yuan (HK$1.8 billion) fund focusing on equity and debt investments.
The Hong Kong-listed company announced its subsidiaries, Nanjing Iron & Steel, Tibet Fosun and Fosun Pingyao, entered into a limited partnership agreement with Tibet Xingye and other investors last month.
The companies agreed to form a fund, Shanghai Fosun Chuanghong Equity Investment Fund Partnership, in Shanghai to make equity and debt investments in industries other than property, pharmaceuticals, steel and mining.
Nanjing Iron & Steel will contribute 100 million yuan, while Tibet Fosun and Fosun Pingyao will contribute 15 million yuan and 40 million yuan respectively.
Tibet Xingye, controlled by Fosun International chairman Guo Gaungchang, will contribute 470 million yuan. It represents approximately 31.23 per cent of the total capital of the fund. The capital contributions will be paid within three years in three phases.
Tibet Fosun will be responsible for the operation and management of the fund. The partnership of the fund is for eight years and the operation period is five years.