CINDA International (00111.HK), Xiamen Jin Yuan Investment Group Co., Ltd., Hang Zhou Sinorock Investment Management Service Limited and a licensed bank established in the PRC have entered into a JV framework agreement for the establishment of Hai Xia Jian Xin Jin Yuan Private Equity Fund and Jian Xin Jin Yuan Tou Zi Guan Li Limited, the management company managing the fund.

The management company's registered capital of RMB50 million ($61 million) will be contributed as to RMB17.5 million (HK$21.35 million) by Cinda International, RMB12.5 million by Xiamen Jin Yuan and RMB20 million by Hang Zhou Sinorock for their respective 35%, 25% and 40% stake in the management company respectively.

Hang Zhou Sinorock is wholly owned by Sino-Rock Investment Management Company Limited, which is indirectly owned as to 40% by Cinda International.

The initial size of the fund is RMB1 billion. The fund will be established after it could successfully secure intended subscription in the amount of RMB0.5 billion in its initial fund raising exercise. The management company will invest RMB40 million in cash in the fund. Xiamen Jin Yuan will, apart from its investment in the management company, further make its capital commitment of RMB62.5 million in cash into the fund.

The balance of the capital contribution of the fund will be raised by the licensed bank established in the PRC from qualified individual and institutional investors. The first phase of fund raising exercise will be completed within six months after the establishment of the management company. At the time of registration of the fund, the receipt of first phase investment amount will be RMB150 million.

Cinda International says that it intends to set up the management company with the partners to manage the fund in order to expand its business in the PRC and to leverage on the direct links between the two coasts of the Taiwan Straits.

Source:chinesestock.org