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Itochu to form ¥220 bil. fund with CITIC

Jiji PressTOKYO (Jiji Press) — Major trader Itochu Corp. is considering setting up a ¥220 billion investment fund with Chinese state-backed conglomerate CITIC Group Corp., sources said.

The fund will mainly invest in Japanese start-ups that have already achieved certain business results and help them launch operations in China, the sources said Friday.

Initially, Itochu plans to procure some ¥55 billion for the fund by the end of this month in cooperation with a CITIC-affiliated investment company, and will increase the amount to ¥220 billion in the future, the sources said.

Itochu decided to establish the fund, apparently believing that the number of Japanese start-ups aiming to expand into China is likely to increase on the back of the improving Japan-China relationship, the sources said.

Itochu acquired CITIC shares jointly with Charoen Pokphand Group, the largest Thai conglomerate, in 2015, investing some ¥600 billion in the Chinese partner, which mainly runs financial operations.Speech

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