(Chinese Version)

Finally, China Internet Investment Fund, a national-backed investment fund, was established in China.

On the afternoon of January 22nd, Cyberspace Administration of China held a press conference in Beijing and announced the establishment of this national-backed fund. During the press conference, China Internet Investment Fund reached a series of strategic cooperation agreements with relevant enterprises and financial institutions.

The fund, co-established by Cyberspce Administration of China and Ministry of Finance with a registered 100 billion RMB (around $14.6 billion), will be “focused on investment in the internet sector”. Up till now, 30 billion RMB (around $4.38 billion) has already been transferred to the fund.

It is reported that the first batch of strategic investors includes: Industrial and Commercial Bank of China (ICBC), CITIC Guo’an Group, China Post Insurance (CPI) as well as three major Chinese mobile carriers (China Mobile, China Telecom and China Unicom), etc. At the same time, an Investment and Loan Linkage Mechanism, supported by ICBC, Agricultural Bank of China and China Development Bank (CDB) will be established to provide enterprises the fund invests in with a package of favorable support measures, such as credit authentication (as high as 150 billion RMB, or around $21.9 billion), financial service, etc.

During the foundation ceremony, a series of strategic cooperation agreement were signed, including a strategic partnership agreement signed between China Internet Investment Fund and six strategic investment enterprises including ICBC, CITIC Guo’an Group, CPI, China Mobile, China Unicom and China Telecom.

As of press time, we still don’t know the exact investment volume of these six partners as well as the specific composition of the fund’s management and decision-making team.

As a matter of fact, rumor already had it that the fund was under preparation during the 2015 World Internet Conference. At that time, an insider revealed that a national-level internet investment fund was under preparation. His words proved to be true with the launch of this $14.6 billion China Internet Investment Fund.

However, China Internet Investment Fund is just one of the few national-backed investment funds established recently. In August 2016, China State-Owned Capital Venture Capital Fund Co., Ltd, a national-backed investment fund, was established with a registered asset of 200 billion RMB (around $29.2 billion). Only a month later, China 's State-Owned Enterprise Structure Adjustment Fund was established with a registered asset of 350 billion RMB (around $51.1 billion).

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Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.