China

China Resources Enterprise and Fung Investments form USD300 Million Investment Platform

China Resources Enterprise (CRE) and Fung Investments announced the establishment of a 50/50 USD300 million joint venture investment platform, focusing on businesses with quality brands, products, services and technologies.

The two parties will each be responsible for USD150 million of contribution to the JV, Fung Investments said in a press release.

The joint venture will make investments in offshore companies (non-PRC incorporated companies) which sell consumer and lifestyle related quality brands, products, services and/or innovative technology, which have potential for introduction to or expansion in China particularly in the Greater Bay Area and which are in alignment or synergistic with the forecasted consumption growth trends in the Greater Bay Area including in particular with respect to the lifestyle, fashion and healthcare sectors. Leveraging on the distribution network of China Resources Group in China and the Fung Group's global supply chain, the joint venture partners will help companies expand their businesses.

Mr. Chen Ying, Chairman of the Board and Chief Executive Officer of China Resources Enterprise Ltd and Assistant General Manager of China Resources Group, said by formally establishing the JV with Fung Investments, both China Resources and Fung Investments can give full play to their respective advantages in the future and bring consumer and lifestyle related quality brands products, services and/or innovative technology to the Greater Bay Area, to satisfy Chinese people's ever-growing needs for a better life.

Dr. Victor Fung, Chairman of Fung Investments, said: “The growth of Chinese consumerism is set to sustain growth and create abundant opportunities for consumer and lifestyle companies that are looking to do business in China. As more Chinese consumers are demanding for new, high‑quality brands, products, services and technologies, we are excited to join forces with CRE to invest in new consumption areas which offer great growth potential such as food, lifestyle, fashion and healthcare.”