SinoCast Daily reported that Nanjing Iron & Steel Co Ltd planned to spend CNY 100 million building Shanghai Fosun Chuanghong Equity Investment Fund Partnership with affiliates, Tibet Xingye Investment Management Co Ltd, Shanghai Fosun Pingyao Investment Management Company Limited and Tibet Fosun Investment Management Co Ltd.

Total investment in the joint venture is CNY 1.505 billion. Nanjing Iron & Steel will account for 6.64% of the new company and the rest three will take 31.23%, 2.66% and 1% by investing CNY 470 million, CNY 40 million and CNY 15 million respectively.

Tibet Xingye is general partner and the other three are limited partners. Effective controller of the four companies is Mr Guo Guangchang chairman of Fosun family.

The partnership period of the Shanghai Fosun Chuanghong Equity Investment Fund is 8 years and the operation period is 5 years. The fund will make equity and debt investments in the companies of industries other than real estate, pharmaceuticals, steel and mining and other targets in line with laws and regulations and agreed in agreement.

Nanjing Iron & Steel executives say that the company makes the investment to boost non-steel industries with efforts, expand investment channels and gain investment income.

(Sourced from SinoCast Daily Business Beat via Comtex)