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China Life to partner on 5 billion yuan semiconductor investment fund
The insurer said the fund will primarily invest in semiconductor-industry companies and support chip design firms, framing it as long-term, patient capital for strategic sectors.
Companies backed by China’s state and provincial governments have announced new funds aimed at building the semiconductor industry, which requires time and resources, as Beijing pushes for more “patient capital,” according to SCMP Economy.
China Life Insurance, the country’s largest life insurer and backed by the State Council, said it will establish a partnership with total capital of 5 billion yuan (US$737 million) that principally invests in companies operating in the semiconductor industry, filings showed to the main stock exchanges in Hong Kong and Shanghai.
The fund, formed jointly with a China Life sister company, is set to finance chip design firms and other semiconductor players that have accumulated technical know-how and resources, along with core technological advantages and established research and development systems, the filings said.
China Life described its involvement as a demonstration of its role as state-owned capital and a provider of long-term and patient capital, while the move follows recent commentary in the Communist Party’s top theoretical journal that urged cultivating longer-horizon investment willing to tolerate greater risk and longer return cycles, SCMP Economy reported.