Launch of ₤50 million UK-China Technology Transfer Fund
22nd October 2015
A £50m fund for investing in UK technology for application in China has been launched as part of Chinese President Xi Jinping’s official trip to the UK. Oxford University Innovation is acting as consultant to the fund.
China New Finance Ltd has announced the launch of a ₤50 million fund for investing in UK technology and businesses seeking to access the Chinese markets. The Fund was officially launched at a signing ceremony in London, as part of Chinese President Xi Jinping’s official trip to the UK.
Shanghai Free Trade Zone (“SFTZ”) is looking to be an anchor investor in the Fund. SFTZ is a free trade zone set up in China’s financial centre, Shanghai. It is responsible for running China’s first international off-shore science innovation incubation platform. Oxford University Innovation Ltd, the technology commercialisation arm of the University of Oxford, is acting as consultant to the Fund.
The Fund management team consists of a mix of highly experienced UK and Chinese professionals, with a track record of investing in & building businesses in China for the last two decades. The team has an established network of contacts in China, and significant experience of dealing with the issues and developing the opportunities in China. A number of large businesses and strategic investors have expressed interest in investing in the Fund.
The Fund works with businesses in the UK whose technology or services are suited to the market in China, but which lack the resources or experience to enter the Chinese market. It bridges the gap between the fast growing demand in China for technology that helps the development of their economy, creates new markets, or improves quality of life and efficiencies, and technology providers in the UK, who need funding and partners in China that will not only give them access to the market, but also protect their technology.
Simon Littlewood, Chief Executive of China New Finance Ltd, commented: “The UK has a long history of creating world leading technologies across a range of industries, with outstanding educational and research centres. The rapid emergence of China over the last two decades as a major economy and end consumer market has created new opportunities for UK businesses and technology providers.
“The health care sector in China is rapidly evolving as a result of China’s aging population and increased wealth, with Chinese spending increasing amounts on healthcare related products and services. The UK’s strong position in the healthcare and life sciences sector puts it in a good position to provide technology and services to this fast growing market.”
“The slowdown in the growth rate of China’s economy, and switch from overseas sales to internal consumption, means Chinese businesses need to adopt new technologies and practices to reduce costs and use resources more efficiently to stay competitive and meet tougher environmental and other controls, and rising expectations in their home market.”
Oxford University Innovation Ltd Chief Executive Tom Hockaday commented: “The Fund will provide an important new source of finance for UK technology businesses, enabling existing businesses to grow through access to the funding and the Chinese market, and also enabling those businesses to invest their resources into research and development in the UK. World-class research as the basis for new products and services in world-scale markets will provide opportunities for the next generation of UK businesses, working collaboratively and competitively in China.”
Mr Johnny Chong, representing Shanghai Free Trade Zone, commented: “SFTZ’s offshore incubator program provides a special innovation zone, with a specially designed set of laws to regulate business and with freer flow of funds in and out of the area. It takes advantage of the latest government policies to attract global innovative SMEs to China to access the consumer and financial markets in China.”
For more information, please email info@chinanewfinance.com
About The Fund
The Fund invests in businesses and technologies from outside China which can be applied in the Chinese market.
A core focus of the Fund is the healthcare sector in China, which has undergone significant reform and expansion in the last few years, as a result of increased wealth and needs resulting from China’s continued economic growth and development.
The Chinese Government’s commitment to using resources more efficiently, switching more generation to renewable power, and reducing pollution and contamination, as well as China’s continuing urbanization, has provided a wealth of opportunities in the Smart City, clean technology, and new materials sectors, areas where the UK has a strong track record of developing technologies.
About Shanghai Free Trade Zone
The Shanghai Free Trade Zone, officially launched in September 2013, is the first free trade zone of its type to be established in China. SFTZ has a range of favourable policies for international businesses setting up within the zone, including taxation, set-up processes, licensing, and the bonded treatment of imported equipment and services. SFTZ manages China’s first off-shore focused science innovation incubation platform, matching international entrepreneurs and technology with Chinese businesses, markets, capital, and financial markets. The incubator was launched in July this year, and is seeking to fund and attract innovative international technology companies.
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