China’s GAC Group to set up investment fund of $4.18 billion

HONG KONG (Reuters) – China’s GAC Group signed agreement on Wednesday with partners to set up an investment fund which aims to strengthen its business development in the new energy vehicle industry.

The fund, with a size of 30 billion yuan ($4.18 billion), will invest in projects such as new energy batteries and automotive chips, according to the statement posted on GAC’s Wechat account.

Bank of China and Guangzhou Industrial Investment and Capital Operation Holding Group Ltd are the other two partners in the fund, it said.

($1 = 7.1744 Chinese yuan renminbi)

(Reporting by Twinnie Siu in Hong Kong and Ethan Wang in Beijing; Editing by Alex Richardson)