THE US$100 million fund set up by the Hong Kong Lippo Group and three other partners will have its investment focus on expanding the mainland department store industry.
The chairman of the Shanghai Commercial Investment Fund, Han Shizhang, who is also the president of Shanghai No 1 Department Store Group, said the plan was to build up to 100 department stores in the city of Shanghai and Zhejiang and Jiangsu provinces.
Related projects will include promoting Shanghai's designer labels in other cities and establishing chain stores for products such as cosmetics, computers and sports wear.
The three regions were chosen for their high living standards, fast-growing consumer markets and rising income levels, Mr Han said.
Shanghai accounted for 15 per cent of China's industrial output last year.
Investment will also be made in companies involved in electronics and construction.