The China Internet Investment Fund (CIIF; Chinese: 中国互联网投资基金; pinyin: Zhōngguó Hùliánwǎng Tóuzījījīn), is a China Government Guidance Fund. The fund focuses on the internet sector including cybersecurity, artificial intelligence, big data, cloud computing and other services that are in line with national strategies and help develop the digital economy of China.
 | |
Native name | 中国互联网投资基金 |
|---|---|
| Company type | State-owned enterprise |
| Industry | Investment management |
| Founded | 22 January 2017 |
| Headquarters | Beijing, China |
Key people | Wu Hai (Chairman) |
| AUM | ¥100 billion RMB (approx US$15 billion) |
| Parent | Cyberspace Administration of China Ministry of Finance |
| Website | www |
Notable companies that the fund has golden share ownership in include ByteDance, Sina Corporation, SenseTime and Kuaishou.
Background
editOn 22 January 2017, CIIF was established as a 100 billion yuan fund by the Cyberspace Administration of China and Ministry of Finance to support investments in the internet sector. An initial 30 billion yuan funding came from firms including ICBC, China Mobile, China Unicom and CITIC Guoan Group. ICBC, China Development Bank and Agricultural Bank of China would provide financial services and a 150 billion yuan line of credit. The aim of the fund was to turn China into a major player in internet technology and to facilitate Premier Li Keqiang’s Internet Plus strategy.[1][2][3][4][5]
CIIF makes use of golden shares that enable it to exercise significant control over companies it invested in despite low ownership. For example, it holds a 1% stake in a subsidiary of ByteDance and appoints one of the three board members of that unit, which holds key licenses for ByteDance's domestic short-video business. Another example is Sina, where it acquired a 1% stake for only 10.7 million yuan ($1.5 million).[3][5][6][7][8][9]
In January 2023, CIIF acquired golden shares in two local divisions of the Alibaba Group that control Youku and UCWeb.[8][9]
Investments
editReferences
edit- ^ "China Has Reportedly Launched a Huge $14.6 Billion Internet Investment Fund". Fortune. Archived from the original on 13 August 2023. Retrieved 7 June 2023.
- ^ "China sets up 100 billion yuan state fund to invest in the internet". South China Morning Post. 22 January 2017. Archived from the original on 24 November 2022. Retrieved 7 June 2023.
- ^ a b c d e f "China's communist authorities are tightening their grip on the private sector". The Economist. ISSN 0013-0613. Archived from the original on 22 November 2021. Retrieved 7 June 2023.
- ^ Mendoza, Carmela (23 January 2017). "Chinese government launches $14.6bn internet fund". Private Equity International. Archived from the original on 9 December 2022. Retrieved 7 June 2023.
- ^ a b c d e f "#29 - Cybersecurity Administration of China (CAC) and the China Internet Investment Fund (CIIF)". www.vermilionchina.com. Archived from the original on 2 June 2023. Retrieved 7 June 2023.
- ^ a b c "Chinese Government Invested in the Same Tech Companies It's Now Attacking". The Information. Archived from the original on 7 October 2022. Retrieved 7 June 2023.
- ^ "Fretting about data security, China's government expands its use of 'golden shares'". Reuters. 15 December 2021. Archived from the original on 6 October 2022. Retrieved 7 June 2023.
- ^ a b "Game over for Jack Ma? China buys Alibaba's 'golden shares'". International Finance. 17 January 2023. Archived from the original on 30 January 2023. Retrieved 7 June 2023.
- ^ a b "China acquires 'golden shares' in two Alibaba units". Reuters. 13 January 2023. Archived from the original on 11 May 2023. Retrieved 7 June 2023.