CIC, Temasek, Silk Road back $800m innovation fund

The fund will be managed by Chinese private equity firm Hopu Investment Management to invest in global mobile internet and artificial intelligence companies.

A group including two sovereign wealth funds, two Beijing-based private equity firms and UK chip company ARM Holdings has launched an innovation fund to back companies focused on mobile internet, artificial intelligence and the 'internet of things'.

China Investment Corporation, Temasek Holdings, and Silk Road Fund and Hopu Investment Management are targeting $800 million for the Hou An Innovation Fund, according to Chinese media reports, although it was not clear how much each investor is committing.

The vehicle will be managed by Hopu and ARM Holdings, according to an announcement on China’s Ministry of Science and Technology website.

Shenzhen-headquartered Shum Yup Group, a state-owned property developer, also invested in the fund, the ministry said. 

Temasek, CIC, Hopu and Silk Road could not be reached for comment by press time.

Last month, China’s Ministry of Finance and the Cyberspace Administration of China established a 100 billion yuan ($14.6 billion; €13.5 billion) internet investment fund to invest in Chinese internet companies.

State-owned banks and enterprises, including the Industrial and Commercial Bank of China, China Unicom and China Mobile have already committed about a third of the fund’s target.