China Resources Enterprise (CRE) and Fung Investments have teamed up to establish a 50/50 $300 million joint venture investment platform focusing on businesses with quality brands, products, services and technologies.
According to the announcement, the two parties will each be responsible for $150 million of contribution to the JV.
The JV will make investments in offshore companies (non-PRC incorporated companies) that 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.
The companies also have to be 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.
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.
CRE was established in 1992 and is the first company within the China Resources Group to be publicly listed.
In the past 30 years, CRE participated in mergers and acquisitions as well as integration in 15 industries including beer, properties, consumer products, retail, gas, cement. In the process, CRE incubated brands that enjoy national fame, such as Snow beer, C’est Bon, CR Ng Fung, China Resources Vanguard.
Fung Investments, on the other hand, is a global investment company privately owned by the families of Dr. Victor Fung and Dr. William Fung.
Fung Investments’ strengths lie in its foresight and ability to connect partners from around the world to invest in sectors that have the potential to transform or lead future developments in Asia, with a focus on Hong Kong and Mainland China.