HSBC Asia invests $10m in Chinese silicon maker

The Hong Kong-based private equity firm has bought a stake in Jaco Solaris in its second deal this week.

HSBC Private Equity Asia has invested $10 million for an undisclosed size stake in Jaco Solarsi, a producer of upgraded metallurgical silicon in China.

Set up in 2006, Jaco Solaris is the only upgraded metallurgical silicon supplier in China that has achieved commercial production, according to its website. 

The investment will help fund Jaco Solaris’ plans to expand capacity and improve technology in order to enhance quality and lower costs.

The investment was made out of HSBC Asian Ventures Fund III, which has yet to close. The venture capital fund targets technology-focused businesses such as renewable and alternative energy companies.

Earlier this week, the firm injected $35 million into a Chinese supermarket chain. It also closed its sixth buyout fund on $1.47 billion, double the size of its previous fund, which closed on $700 million in 2004.

Set up in 1988, HSBC Private Equity Asia is the private equity wing of HSBC Group, the banking and financial services conglomerate.