Official signing took place in Beijing on Jan. 14 for the agreement between China National Development Bank and Israel Discount Bank (IDB) on the establishment of Huayi VC Fund, a venture capital fund of US$ 350 million.

Eliyahu Yishai, Deputy Prime Minister and Minister of Industry, Trade and Labor of Israel, currently on his first visit to China, and Chen Deming, Chinese Minister of Commerce, attended the signing ceremony.

The agreement of capital commitment was singed among Fan Xun, Vice-director of Investment Bureau of NDB, Mr. Dianel Shinar, Director of IDB, Lin Xianghong, Chairman of Suzhou Venture Capital Investment Group and Joint Chairman of Huayi VC Fund, and Gal-Gal-Or, Venture Capital Managing Partner of Huayi VC Fund.

This is the sixth industrial fund with the participation of NDB. In the past 10 years since 1998, National Development Bank has been involved in China-Switzerland Cooperation Fund, China-Belgium Direct Stock Investment Fund, China-ASEAN Investment Fund, China-Italy Mandarin Fund, and Sino-African Development Fund.

When interviewed by the reporter of "First Financial Daily", the representative of NDB refused to disclose the proportions of capital commitment of National Development Bank and IDB in Huayi VC Fund.

IDB is the largest listed stock company in Israel with multi-field operations, which first entered China VC investment market in 2004, when it aligned with Infinity Risk Investment Company and China-Singapore SIP Venture Capital Investment Co., Ltd. (the present Suzhou VC Investment Group) to set up Infinity-China-Singapore Venture Capital Investment Fund in SIP with the first phase capital input amounting to USD 10 million. The investment is chiefly directed to the following three companies: the Israeli technological companies with business operation in China, the China-Israel joint-venture enterprises, and the Chinese technological companies in global expansion or in developing world market. So far the Fund has invested USD 14 million in 6 projects of China-Israel cooperation, and its stock value has risen to over USD 20 million on account of the USD 8 million returns. IDB is currently the chief agent of Infinity in risk investment.

According the business plan of Suzhou VC Investment Group, it will set up the USD 350-million Huayi VC Investment Fund jointly with Israeli partners. Previously, National Development Bank has been approved by the State Council to invest USD 30 million directly in Huayi VC Investment Fund.