AgBank and Wuxi govt release $2.3bn PE fund

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.

View the full story in Reuters.