China Life Insurance Group and internet service provider Baidu are setting up a CNY 7 billion (USD 1 billion) private equity fund for internet and other technology investments, reports Reuters, citing China Life’s listed arm. The Baidu Fund Partnership will be capitalised by China Life through a special partnership, which will contribute up to CNY 5.6 billion, with Baidu itself contributing as much as CNY 1.4 billion.
The partners said they will be responsible for paying 30 percent of their capital contributions initially. They added that the fund will focus on middle to later stage investment, including unlisted companies with “significant association” with China, in the internet sector, including mobile internet, artificial intelligence and internet finance.
Baidu recently reported total revenues of CNY 20.8 billion (approximately USD 3 billion) for the second quarter of 2017, an increase of 14.3 percent year-on-year, while net income reached CNY 4.4 billion (around USD 651 million), up 82.9 percent year-on-year.
