China Investment Corp., the country’s sovereign wealth fund, will set up an industrial cooperation fund worth between 1 billion and 1.5 billion euros ($1.7 billion) along with French bank BNP Paribas and private equity firm Eurazeo, people familiar with the matter told Caixin.
The fund will invest in French companies demonstrating potential in Chinese markets, sources said. Further details regarding the fund are not available.
Sources close to China Investment Corp. said that the fund aims to establish a cross-border ecosystem involving governments, industry players, financial institutions and third-party service providers.
This is not China Investment Corp.’s first fund of this kind. In 2017, it set up a $5 billion cooperation fund with Goldman Sachs, eyeing U.S. projects in fields such as manufacturing and health care. The fund garnered $1.5 billion in first-round financing, and its second round will be closed soon, Caixin has learned.
Established in 2007, China Investment Corp.’s total assets have surpassed $941.4 billion. Its total foreign investment in 2017 reached $120 billion, ranking third globally, according to the latest public information.