Report: Bank of China to raise media fund

A Bank of China subsidiary is reportedly setting up an RMB-denominated private equity fund focused on China’s media industry.

BOC International Holdings, a Hong Kong-based investment banking arm of Bank of China is reportedly in talks with potential investors including major state-owned media groups to launch a private equity fund focused on China’s media sector.

The fundraising team is headed by Li Tong, deputy chief executive and managing director at BOC International, unnamed sources told Reuters. According to the sources, one of the potential limited partners in the multi-billion-yuan fund could be a large state-owned media group based in southern China, though a deal has not been struck yet.

Besides investments in traditional media, the fund will focus on new media and new technology. It will also target consolidation opportunities in the Chinese media industry, a source told Reuters. The size of the fund has not been determined yet.

Established in 1998, BOC International Holdings is a fully owned subsidiary of Bank of China, which is one of four state-owned banks in China.

BOC International was unavailable for comment at press time.