Guangzhou City Construction Investment Group (GZCCI Group), a Chinese state-owned company with about 370 billion yuan ($51.1 billion) in total assets under management (AUM), has officially set up a 10-billion-yuan ($1.4 billion) fund to invest in the cultural industry in southern China.
GZCCI Group, which specialises in the investment, construction, and operation of urban infrastructure, targets to raise 10 billion yuan for the new fund named “Guangdong-Hong Kong-Macao Greater Bay Area Cultural Industry Investment Fund I,” the firm announced on Sunday.
The equity investment fund plans to source deals across core cultural segments, including technology-enabled cultural innovation, consumption, tourism, education, and sports, said the firm.
The fund will primarily back local cultural brands and companies in Guangzhou City as well as the overall Greater Bay Area — a megalopolis consisting of nine cities and the special administrative regions of Hong Kong and Macau in southern China. It is also tasked with attracting quality cultural projects from outside the Greater Bay Area to build presence in the region.
The fund completed its registration with the Asset Management Association of China (AMAC), a self-regulatory association of fund managers in the country, in early June.
GZCCI Group first unveiled its plan of building the new fund at the Guangzhou Cultural Industry Fair in March when it announced a targeted 2-billion-yuan ($276.5 million) first close for the fund.
Founded in 2008, GZCCI Group operates four main business lines, including urban construction services, culture & tourism, financial investment, and new-generation infrastructure.
The group invests in privately held companies through fund management affiliates like SFund, which has enjoyed the initial public offerings (IPOs) of over 10 portfolio companies so far this year. The latest SFund-backed IPOs include a 1.122-billion-yuan ($155.2 million) ChiNext listing by Shenzhen Leoking Environmental, an environmental protection services provider, and electrical appliances maker Guangdong Deerma Technology’s 1.231-billion-yuan ($170.2 million) ChiNext IPO.