Huayuankou Economic Zone and Arc China have signed an agreement to form the Liaoning Huayuankou Investment Fund, which will be established through a joint investment totalling RMB1bn (approximately USD146m).
This is the first private equity fund in Dalian in partnership with the local government, and the primary focus will be on investment in the industrial economy.
Dalian has a registered population of over six million and is one of two biannual locations of Summer Davos.
The establishment of the fund marks a step in building a regional financial centre in Dalian and also makes progress on a specific initiative in the development of Huayuankou’s new industrial base.
"New materials, new energy, consumer-oriented sectors, media, healthcare, natural resources, industrial technology, and aerospace will be the focus of this fund for the ten year duration," says Wang Hai, director of the Economic Development Bureau in Huayuankou Economic Zone. "This fund can provide capital to forthcoming projects and the development of local enterprises. As the enterprises grow, the fund will make profits for the investors through a listing on the Growth Enterprise Market or other exchange.”
Arc China will partner with the Westly Group, an American clean technology venture capital firm, to promote the growth of China’s green technology market.
Arc China is a wholly-owned foreign enterprise focusing on investment in China’s domestic consumption-oriented high-growth enterprises in the developing Tier II and III cities.
According to the agreement, ARC China will provide services for the development of Huayuankou area including the overseas marketing of local companies, consulting local companies on accessing foreign capital markets, and providing local companies with opportunities for international mergers and acquisitions and technology transfer.
