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UpdateChina Resources unit mulls US$377m fund to ride on health care sector growth

China Resources Pharmaceutical will commit 12.21 per cent of the capital for the fund, whose partners include other related companies and Structure Reform Fund

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China’s pharmaceutical market is the world’s second largest, forecast to grow annually at 9.1 per cent from US$108 billion to US$167 billion by 2020, according to the US’ Department of Commerce. Photo: Reuters
Karen Yeung

China Resources Pharmaceutical Group’s subsidiary, CR Pharm (Shantou), announced that it was considering creating a 2.5 billion yuan (US$376.84 million) fund to make equity investments in Chinese pharmaceutical firms, according to a filing to the Hong Kong stock exchange.

The announcement comes as President Xi Jinping laid out in his 19th Party Congress report health care policies to promote a “healthy China”.

China Resources Pharmaceutical has proposed to commit 305.25 million yuan or 12.21 per cent of the capital for the fund. Other partners of the fund include China Resources Holdings subsidiaries – CR Capital, CR Capital LP, CR Sanjiu, CR Double-Crane, CR Pharmaceutical Investment and CR Pharmaceutical Commercial, as well as CVC, Guoxin and Structure Reform Fund.

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The fund will have a maturity of five years, with the option to extend up to two years.

CR Pharm (Shantou) will be the executive general partner of the fund, responsible for the investment, management, utilisation and disposal of the assets.

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Shenzhen Harvest Huaji Equity Investment will be the fund manager and entrusted manager, responsible for the investment management, disclosure and filing of information.

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