Fund taps growing trade ties

Local investment house First Eastern Investment Group yesterday launched a fund that aims to capitalise on the growing economic relationship between China and the European Union.

The launch comes a day after the two sides agreed to open the door to an estimated 85 million mainland textile items stranded at European ports in a quota dispute.

First Eastern, which specialises in investment on the mainland, said in a statement that it would aim to raise Euro100 million ($968.33 million) for the fund.

There will be four other partners, including German mobile-phone maker Siemens, chemical giant BASF and Swiss-based Zurich Insurance.

'The fund will target investment opportunities involving the growing trade and investment flows between Europe and China, as well as opportunities to maximise synergy benefits between European and Chinese enterprises through market access, technology transfer and strategic alliances,' said the statement. 'With high-level networks in both regions and strong financial backing through its partnership networks, the fund will provide the enterprises with greater leverage in this highly competitive two-way market.'

Founded in 1988, First Eastern has invested in more than 80 projects on the mainland.