Xinhuanet to Invest 15 Million Yuan in Partnership Fund

Xinhuanet subsidiary Xinhuanet Venture Capital has committed 6 million yuan to a newly formed equity investment partnership, according to a Shanghai Stock Exchange filing on Thursday.

The partnership fund, called Xinhuanet Zhixin (Nantong) Equity Investment Partnership, has a total subscribed capital of 63.1 million yuan, the state media company said.

It will mainly focus on equity investments and profits will be distributed to partners based on their paid-in capital, with a basic income target of 8% per annum.

As the executive partner, Guotai Junan Financial Holdings Investment (Shanghai) will manage the partnership's affairs, including investment project management, supervision, and exit strategies.

Xinhuanet expects Xinhua Investment Holdings to become the company's new controlling shareholder as it is set to take over a controlling stake in Xinhuanet, according to a Shanghai bourse filing on Tuesday.

Xinhua Investment plans to acquire 264,679,740 shares or 51% of the Chinese online media company's total share capital from state media Xinhua News Agency.

Xinhua News Agency will still remain as Xinhuanet's actual controller.

Xinhua Investment's holdings in Xinhuanet will increase to 61.4% from 10.4% after the transaction.

Xinhuanet's subsidiary, Xinhua Yi Lian Investment Management (Tianjin) committed 30 million yuan to the establishment of Changsha Quanzhong Venture Investment Partnership, according to a Tuesday filing with the Shanghai bourse.

With a target size of 1 billion yuan and an initial capital of 652 million yuan, this fund will focus on venture investments. Xinhua Yi Lian will hold a 4.6% stake in the first round of funding.