ZTE to invest CNY316.5m in two venture capital funds

By Aaron Back, Dow Jones Newswires
Monday 27 September 2010

70% of one of vendor's funds to make investments in technology, media, and telecoms.

Chinese telecommunications equipment maker ZTE Corp. said Monday it will invest a total of CNY316.5 million ($47.2 million) in two new venture capital funds.

ZTE will invest CNY300 million in the ZTE Venture Capital Fund, which will invest in "high-growth industries supported by the industrial policy of the state and related to the restructuring of the economy," ZTE said in a statement on the Hong Kong stock exchange. The fund will have a "special focus" on technology, media, and telecommunications, with at least 70% of its investments to be in those sectors, ZTE said.

The ZTE Venture Capital Fund will be a CNY1 billion fund, with the remainder of its capital to be raised from specific investors, including institutional and individual investors, ZTE said.

ZTE will also invest CNY16.5 million to establish ZTE Capital Management Co., which will "engage in the raising and management of venture capital funds," the statement said.

A second company, Hekang Co., will invest CNY13.5 million in the fund, giving it a total registered capital of CNY30 million, according to the statement. Min Yumin, a director of ZTE, is also currently an executive director of Hekang Co., it said.

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