The lender and its local rivals take part in global rush to set up China-focused PE funds.
Agricultural Bank of China has launched a 15 billion yuan ($2.3 billion) private equity fund with the Chinese city of Wuxi to invest in high-growth sectors such as logistics and energy conservation, the bank said on Wednesday.
The country's third-biggest lender by assets said the first phase of capital injection into the fund, which will be based in Wuxi, near Shanghai, will amount to 5 billion yuan.
"AgBank (Wuxi) Private Equity Fund has combined AgBank's financial strength and Wuxi's strength in various industries," AgBank said in a statement posted on its website.
Chinese banks are rushing to join global players such as Morgan Stanley in setting up China-focused private equity funds to tap the country's booming economy.
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