MARKETS | Tony Chua, China

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

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.