Insurance giant invests in Yangtze River Delta private equity fund

Insurance giant China Pacific Insurance (CPIC) and brokerage Guotai Junan Securities are among the first Chinese firms to participate in a new CNY10bn ($1.45bn) private equity fund targeting the hi-tech industry in the Yangtze River Delta region, which encompasses Shanghai and the surrounding area.

CPIC has committed to purchasing CNY600m worth of shares in the Yangtze River Delta Collaborative Leading (Shanghai) Private Fund Partnership, also known as the YRD Fund II, reported Yicai Global citing a statement by the Shanghai-headquartered insurance company.

Guotai Junan is contributing CNY700m. Airport operator Shanghai International Airport will invest CNY495m and FinTech firm Hundsun Technologies CNY100m.

This is the second Yangtze River Delta industry fund set up by state-owned institutional investor Shanghai International Group, which owns a stake of 10.6% in CPIC and 30% in Guotai Junan. The first fund was formed in 2018 and has invested in nearly 800 technology projects so far.

The YRD Fund II, which will focus on digital intelligence, semiconductors and biomedicine, will promote in-depth integration of the industrial chain in the Yangtze River Delta region, help hi-tech firms develop faster and promote the formation of leading industrial clusters as part of the country’s strategy of boosting integration in the region.