China-Asean Investment Cooperation Fund
|
Native name
|
中国-东盟投资合作基金 |
|---|---|
| Industry | Private equity |
| Founded | 2010 |
|
Area served
|
ASEAN and China |
|
Key people
|
Li Yao, Chief Executive Officer; Song Siyuan, Chief Operating Officer |
| Website | http://www.china-asean-fund.com |
The China-ASEAN Investment Cooperation Fund, also knowns as the China Asean Fund or CAF, is a USD-denominated offshore quasi-sovereign private equity fund that is under the direction of the Government of the People's Republic of China and that invests throughout Southeast Asia, which the fund defines as including China. It was started by China's sovereign wealth fund. The establishment of the fund was announced in 2009 by Chinese Premier Wen Jiabao and it began operations in 2010. Chinese Vice President Xi Jinping sees the fund as a way for the Chinese government to provide financial support to ASEAN. China hopes to gain influence in ASEAN through the fund.
The fund, which is sponsored by the Export-Import Bank of China, among other institutional investors, became the first Southeast Asia-focused private equity fund approved by China’s State Council and the National Development and Reform Commission. The Export-Import Bank of China is the "anchor sponsor" with a "seed investment" of US$300 million. Three other Chinese institutions were "cornerstone investors", investing a combined US$500 million. The sovereign wealth fund, the China Investment Corporation, " jointly founded" the fund along with the Export-Import Bank, according to the China Economic Review, quoting the Wall Street Journal. The International Finance Corporation of the World Bank invested US$100 million and became another "cornerstone investor." The Export-Import Bank owns 52% of the management company while the China Investment Corporation owns 24%.
Chinese Vice President Xi Jinping spoke of the goals for the fund in a speech to the ninth China-Asean Expo saying, "What is more, China has provided financial support to ASEAN to the best of its abilities by setting up the China-ASEAN Investment Cooperation Fund and making concessional loans, facilitating economic development in ASEAN countries."
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Wikipedia