China Merchants Capital, Chinachem Group and Qingdao City Construction Investment (Group) Limited (“Qingdao City Investment Group”) have joined forces to establish the CC Smart City Tech Fund I (“the Fund”), and a signing ceremony was held simultaneously in Shenzhen and Hong Kong today.

With a size of US$100 million, the Fund is the first venture capital platform in the smart city technology sector set up by China Merchants Capital in collaboration with Chinachem Group and Qingdao City Investment Group. Focusing on smart city technology, smart city operation and management, and real estate technology in the Greater Bay Area, the Fund will invest in promising technology companies that will create synergy with China Merchants Group, Chinachem Group and Qingdao City Investment Group. The Fund will further leverage the resources of state-owned enterprises in Hong Kong to support local start-ups and promote the development of Hong Kong’s social prosperity. 

The Fund is an innovative initiative of China Merchants Capital in response to the 14th Five-Year Plan to “accelerate digital development and collaboratively promote the building of new smart cities”. Moreover, it is a proactive quest to enable the development of smart city technology using the industry resources of Chinachem Group, China Merchants and Qingdao City Investment Group, guided by the strategy of integration between industry and finance, and the promotion of social progress through commercial success. The Fund will serve as an entry point for the three parties to establish long-term strategic collaboration, complementing each other with their respective resources and realising the ultimate objective of win-win development for all.

The Fund marks another important milestone for Chinachem Group following its brand rejuvenation last year. Chinachem Group is a leading developer in Hong Kong with businesses spanning property development and investment, hotel operation and property management services. Following the introduction of the world’s first purpose-built construction energy storage system, “Enertainer”, Chinachem Group will further invest in the innovation and technology sector, such as its accelerator collaboration with the Hong Kong Science and Technology Park announced last month to support local start-ups. As for the Fund’s partnership, Chinachem Group will provide real estate expertise and participate in the investment decision process, promoting regional smart city technology with China Merchants Capital and Qingdao City Investment Group.

Qingdao City Investment Group is a major state-owned investment platform in Qingdao. It has always followed the “dual direction” of aligning with government strategy and market-oriented transformation, strives to build the “three clusters” of listed companies, AAA enterprises and funds, and continues to consolidate the “four underlying assets” of finance, city, industry and transportation. 

China Merchants Capital, a joint venture between China Merchants Group and GLP, specialises in alternative investment and asset management. China Merchants Capital is one of the leading private equity firms in China with an asset management portfolio of about RMB 280 billion as of the end of 2020. China Merchants Group is a century-old state-owned conglomerate in Hong Kong, with business focus on three core industries: integrated transportation, specialty finance, and integrated city and suburban development and operation. It has RMB 10.3 trillion in total assets as of the end of 2020, and ranks first in terms of total assets and net profits among state-owned enterprises. GLP is a global leader in investment management and business innovation in logistics, fixed assets, infrastructure, finance and related technology, with assets over US$30 billion in China.