China Life Insurance Group has partnered with web services provider Baidu to form a private equity fund worth around US$1 billion, focusing on internet and other technology investments.
The insurer, the country’s top insurer by market value, said in a Hong Kong Stock Exchange statement that it’s contributing RMB5.6 billion (US$840 million) to the Baidu Fund Partnership, with the rest being filled by Baidu.
The fund will focus on middle- and late-stage investments, including companies with “significant association” with China. There will be special focus on technological endeavours such as mobile internet, artificial intelligence, and online finance, according to the statement.
Both firms will initially pay 30% of their pledged capital contributions.
China Life has already made several recent tech investments. Last year, it invested US$600 million in ride-sharing firm Didi Chuxing. It also joined Uber’s US$2.8 billion series E round in 2015.
Meanwhile, Baidu established its own tech investment vehicle Baidu Capital in 2016, having raised around RMB20 billion (US$3 billion) so far. Baidu’s portfolio includes companies such as New Zealand-based AI start-up 8i, Big Data solutions provider Shumei Technology, and trucking logistics firm Huochebang.
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