Itochu to Create 220-B.-Yen Investment Fund with CITIC
Tokyo, July 5 (Jiji Press)--Major Japanese trader Itochu Corp. <8001> is considering setting up a 220-billion-yen investment fund with Chinese state-backed conglomerate CITIC Group Corp., informed sources said Friday.
The fund will mainly invest in Japanese startups that have already achieved certain business results and help them launch operations in China, the sources said.
Initially, Itochu plans to procure some 55 billion yen for the fund by the end of this month in cooperation with a CITIC-affiliated investment company, and will increase the amount to 220 billion yen in the future, the sources said.
Itochu decided to establish the fund, apparently believing that the number of Japanese startups aiming to expand into China is likely to increase on the back of the improving Japan-China relationship, the sources said.
Itochu acquired CITIC shares jointly with Charoen Pokphand Group, the largest Thai conglomerate, in 2015, investing some 600 billion yen in the Chinese partner, which mainly runs financial operations.
[Copyright The Jiji Press, Ltd.]