China Development Financial Holding Co (中華開發金控) yesterday signed a cooperation agreement with Kunshan Chuangye Holding Co (昆山創業控股) in Taipei to expand its presence in China’s Jiangsu Province.
With a focus on investment banking, China Development Financial aims to join with its Chinese partner in creating a cross-strait investment platform, the company said.
The agreement came after China Development Financial set up office headquarters for its capital leasing unit in the Chinese city on April 26.
“The investment platform will give its top priority to creating an equities fund with participation from China’s national, provincial and private enterprises, as well as Taiwanese companies,” China Development Financial said in a statement.
Under the partnership, the two companies will seek to establish an overseas fund to guide Jiangsu-based capital to Taiwan. Kunshan Chuangye will also help China development explore investment opportunities in Kunshan, a satellite city in the greater Suzhou region, by acquiring stakes in financial institutions or creating joint ventures there, the statement said.
The cooperation pact is in line with China Development Financial’s new business model, under which the company is shifting its focus from pursuing capital gains to asset management.