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China Life to back semiconductor funds with 5 billion yuan
The insurer plans to invest primarily in semiconductor firms, including chip design companies, through a state-linked partnership with total capital of 5 billion yuan.
China Life Insurance, backed by the State Council, plans to establish a partnership fund focused on the semiconductor industry with total capital of 5 billion yuan, according to filings reported by SCMP Economy. The insurer said the fund will primarily invest in companies operating in semiconductors, targeting businesses including chip design firms.
The new fund would be jointly formed with a China Life sister company, and is intended to support firms with substantial technical know-how and resources in semiconductors, including “core technological advantages” and established research and development systems, the filings said.
SCMP Economy also reported that the move aligns with a broader push for more “patient capital” in China. The Communist Party’s top theoretical journal, Qiushi, ran commentaries for three days urging the cultivation of long-term capital willing to tolerate greater risk and longer return cycles amid rising great-power competition, SCMP Economy said.
In its rationale for the plan, China Life described its role as “a significant force of state-owned capital” and said involvement in strategic emerging industries such as semiconductors fulfills its responsibility to support national strategies, while also acting as a provider of long-term and patient capital, the outlet reported.