ASEAN China investment fund launched in Thailand

ASEAN China investment fund launched in Thailand

Agence France-Presse, Bangkok

An ASEAN China investment fund was launched in Thailand on
Friday aimed at directing US$125 million to small- and medium-
sized enterprises in China and Southeast Asia.

The private equity fund was launched by visiting Swiss
President Joseph Deiss, whose country is a main initiator and
contributor to the fund involving China and the 10 members of the
Association of Southeast Asian Nations (ASEAN).

"It is the first private equity fund that will serve small-
and medium-sized enterprises (SMEs) in the whole ASEAN China
region," Deiss told reporters at the fund's launch.

"It is also the first time ever that a private equity fund has
an explicit goal to promote closer economic and trade links
within the countries of ASEAN and between ASEAN and China," he
said.

China and ASEAN have grand plans to set up the world's largest
free trade area by 2010 which will boast 1.7 billion consumers, a
combined economy worth about $2.0 trillion and combined external
trade of over 1.2 trillion, according to fund documents.

The fund plans to target growth industries such as car parts,
electronics and transport over eight years, after which
investments will be liquidated with all proceeds distributed to
investors.