CDC plans SE Asia fund

CDC plans SE Asia fund

MANILA (AFP): Taiwan's China Development Corp. (CDC) will organize a billion dollar venture capital fund to invest in four Southeast Asian countries hit by currency crises, a Philippine subsidiary of the firm said yesterday.

The fund will funnel investments into the Philippines, Malaysia, Thailand and Indonesia, the three Southeast Asian countries most affected by the currency crisis, said Joseph Tseng, president of CDC subsidiary Sino-Philippines Asset Management Inc.

A separate holding company would be organized to handle the fund, he added.

The fund will have an initial capital of $650 million but will eventually be increased to one billion dollars.

The venture capital fund, administrated by CDC which is controlled by Taiwan's ruling Kuomintang party, was set up after a delegation of Taiwan businessmen and government officials visited countries affected by the regional financial crisis.