RCIF, Suiyong Capital and Dazheng Investment Group launch the China-Russia Regional RMB Fund

Press release, 26.04.2019

Beijing, April 26, 2019 - The Russia-China Investment Fund (RCIF), Suiyong Capital and Dazheng Investment Group have launched the China-Russia Regional RMB Fund and started analyzing potential projects. The corresponding announcement has been made after a joint report to the Heilongjiang Provincial Government by the three shareholders during the 2019 Belt & Road Forum and the official visit of President of the Russian Federation Vladimir Putin to Beijing.

The Fund mainly focuses on investment into strategic important projects in Russia and China in equal proportion, setting up itself as the first and most important example of implementing regional cooperation between the two countries (Moscow Region, Far East, and Northeastern China). For Chinese projects, more focus will be put on Belt and Road related projects and other perspective sectors.

Initially the Fund holds RMB 1bn (around $150mn) under management. The Fund's target capital, which will be raised from leading institutional investors in China, is RMB 6-7bn (around $1bn). The concept of the Fund was initiated from the Inter-regional Cooperation Council of the China-Russia Committee of Friendship, Peace and Development.

The parties have identified priority areas of cooperation, and are now studying a number of specific investment opportunities in natural resources, financial services, industrial manufacturing and healthcare sectors. The parties also focus on the support of Russia’s state strategy for technology development and investments.

Kirill Dmitriev, CEO of RDIF and Co-CEO of RCIF, said:
"The Fund will engage in the implementation of strategically important investment projects, focused on the Central Federal District, the Far East of Russia and the north-eastern part of China. The Fund will actively promote the strengthening of economic ties at an inter-regional level, through the use of national currencies in all settlements. The China-Russia Regional RMB Fund virtually is the first active RMB fund focusing on Russia and China. It is one of the most important examples of regional cooperation between the two countries".

Bing Hu, Co-CEO and President of RCIF, said:
"The China-Russia Regional RMB Fund is a landmark example of the productive development of the bilateral regional cooperation. It is especially important that the fund is formed in RMB, which will reduce foreign exchange risk between RMB and RUB via other currencies. We are pleased that RCIF participated in the initiation of this Fund and we welcome new partners as the two countries continue to develop their regional cooperation."

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Russia-China Investment Fund (RCIF) is a joint fund, established by the Russian Direct Investment Fund and China Investment Corporation (CIC). The activity of RCIF is aimed at development of bilateral economic, trade and investment relations between Russia and China. Further information can be found at www.rcif.com

Suiyong Capital is a large mixed-ownership investment company funded by its major shareholders of Guangzhou Industrial Investment Fund and Shanshan Corporation. Suiyong Capital has paid-up registered capital of RMB 3bn and is mainly engaged in the acquisition and disposal of non-performing assets, venture capital (VC) funds, private equity investment (PE) funds and financial industry investment, etc.

Dazhen Investment Group is a financial holding platform of the Heilongjiang Provincial Government with total assets of RMB 9.368bn. The main investments made by the Company include Longjiang Bank, Jianghai Securities, private equity funds and other financial institutions as well as a group of high-tech enterprises represented by HIT Robot Group.

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler
Tel: +44 (0) 20 7796 4133

Jessy Zheng
Russia-China Investment Fund
Beijing, China
Tel.: +86 10 5762 9000
Fax: +86 10 57629111
jie.zheng@rcif.com

Yury S. Trofimov
Russia-China Investment Fund
Moscow, Russia
Tel.: +7 (495) 230-05-55 ext. 4243
Mob.: +7 (985) 765-13-12
yury.trofimov@rcif.com