BEIJING (Reuters) – China Life Insurance Group Co and Baidu Inc will form a 7 billion yuan ($1 billion) private equity fund, targeting internet and other technology investments, China Life’s listed arm said on Thursday.
The Baidu Fund Partnership will be capitalized by China Life through a special partnership, which will contribute up to 5.6 billion yuan, the insurance company said in a Hong Kong Stock Exchange statement.
Baidu, the Chinese language internet search provider, will contribute as much as 1.4 billion yuan.
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, it said.
($1 = 6.6605 Chinese yuan renminbi)
(Reporting By Matthew Miller, editing by David Evans)