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Wecast to form JV with He Ying Private Equity Fund

Wecast Network has formed a Joint Venture (JV) called Seven Stars He Ying Smart Cloud (SSHY), with Beijing HE YING Fund Management Limited (He Ying).

The JV, which will be 51 per cent owned by Wecast and be added to the Product Sales Cloud, will focus on several strategic areas using Wecast’s burgeoning BASE + VPaaS infrastructure: supply chain finance, supply chain management and financial settlement for both the automotive and commodities industries as well as a global commodity index exchange module based on the NextGen Exchange Group’s existing platform, trading system and technology (as previously announced, Wecast recently acquired 51 per cent of NextGen Exchange Group).
 
To facilitate the cross-border supply chain finance segment of the JV, SSHY and Wecast will establish a limited partnership fund in China, with SSHY responsible for raising RMB50 Billion (USD7.4 billion USD) from investment partners such as government entities, banks and insurance companies over the next 18 months. Since 2015 (and separate from the JV that is being announced today), He Ying’s management has raised RMB77 Billion in private equity funds. Wecast will oversee the management and business development of the JV’s operations and projects. 
 
Once fully operational, the supply chain finance fund could theoretically convert each dollar from the fund into the generation of 6-10x sales turnover over a 12 month period, with average gross margins for the commodity and automobile industry, of 1-3 per cent.

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