XJ and Itochu Set up Strategic Cooperation to Promote Global Investment and Quality Projects
Photo: XJ Capital and Itochu Sign Strategic Cooperation Agreement for Global Industrial Fund
On 5 July 2019, Itochu and CITIC Group's cross-border investment platform XJ Capital held a signing ceremony for a strategic cooperation agreement for overseas industrial funds in Hong Kong. The purpose of this cooperation is to integrate the advantageous resources of both sides and jointly promote overseas investment and the landing of quality projects. The two sides will cooperate closely in the project channel, capital operation and post-investment value-added based on the industrial layout and resource network of CITIC Group and Itochu on the platform of CITIC Overseas Industry Fund.
Since 2018, Sino-Japanese relations have gradually returned to normal. This year coincides with the 70th anniversary of the founding of New China. Japan has also entered the era of peace. The relations between the two countries are standing at a new historical starting point. Faced with today's complicated and changeable international situation, China and Japan, as the world's second and third largest economies, share more and more common interests and concerns. At the recent meeting of leaders of the two countries held in Osaka, the two countries agreed to further deepen the exchange of interests and strengthen mutually beneficial cooperation in a wide range of fields such as scientific and technological innovation, intellectual property protection, economic and trade investment, finance and finance, medical care, old-age care, energy conservation and environmental protection, tourism and sightseeing.
In this context, CITIC Group has been committed to strengthening two-way communication and deepening connectivity since it introduced Itochu as a strategic investor in 2015. Itochu's executive director Hiroshi Nomiya said that Itochu's cooperation with CITIC Group has a long history and has a good foundation for cooperation. This cooperation with XJ Capital is another important milestone since IDC's industrial fund cooperation. The two sides will earnestly help the invested enterprises to grow up, help them to develop the Chinese and third country markets, and realize win-win results.
Dr. Hu Bin, Managing Partner of XJ Capital, said that the two sides will adopt a market-oriented operation mode to promote the multi-level integration of China's economy and technology with overseas by investing in high-quality targets in Japan, Europe and the United States. Itochu, one of Japan's five largest trading houses, has a wide range of business tentacles and customer networks in Japan and around the world, which will greatly enrich the fund's high-quality project channels. The Information and Communications Department has rich experience and profound insights into relevant investment fields. The two sides have built deep mutual trust in past cooperation and believe that this cooperation will form a strong joint force.
According to reports, the total size of the fund is US$ 2 billion. It is planned to be carried out in three phases, with the first phase being US$ 500 million. The fund will focus on advantageous industries mainly in developed markets such as Japan, Europe and the United States, and invest in enterprises with unique technological or brand advantages and stable profits, including but not limited to high-end manufacturing, consumption upgrading, information technology, commercial services, medical and health and other fields. At the signing ceremony, besides Itochu's investment intention and strategic cooperation agreement, Shinkin Holdings also signed a fund subscription agreement with Casper Investment Management Co., Ltd. and a strategic cooperation agreement with Qidi Triple Helix Co., Ltd.
In recent years, Sino-Japanese capital cooperation has become more and more active. According to statistics, the number of Japanese enterprises that Chinese enterprises participated in investment and acquisition reached 59 in 2018, up 22% from a year earlier, reaching a five-year high. At the same time, Japanese enterprises are also seeking cooperation with a more active and open attitude. On the one hand, as a manufacturing power and the world's largest consumer market, China is the preferred destination for Japanese enterprises to expand overseas. A group of Japanese technology-based enterprises have high-end technology and advanced concepts, adhering to the "craftsman spirit" and have been cultivating in their subdivisions for many years. After obtaining the business model verification of the local market, they are eager to open up wider market space. On the other hand, Chinese enterprises also hope to establish cooperation with Japanese enterprises that have "technological frontier advantages, mature business models and advanced management experience" to achieve the effects of improving asset structure, upgrading technology level and upgrading services, thus effectively enhancing enterprise value.