China Life Insurance Group and Chinese search engine company Baidu will form a CNY7 billion (US$1.05 billion) private equity fund, targeting Internet and other technology investments.
The Baidu Fund Partnership will be capitalised by China Life through a special partnership, which will contribute up to CNY5.6 billion, reported Reuters citing China Life Insurance's statement to the Hong Kong Stock Exchange. Baidu will contribute as much as CNY1.4 billion.
The Baidu Fund Partnership 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, the statement said.
The partners are responsible for paying 30% of their capital contributions initially.