Suning Plans $7.7B Fund To Expand And Invest Overseas

Suning Commerce Group, one of China’s largest electronics retailers, plans to create a separate investment arm seeking to raise as much as RMB50 billion (US$7.7 billion) within five years.

The Nanjing-based Suning is also establishing two separate investment funds each targeting RMB2 billion by the end of this year.

One fund will focus on investing in media and content production industries. The other vehicle will target the sports consumption and retailing sectors.

The newly planned funds may potentially seek to accelerate the group’s outbound investments, as well as expand its existing investment activities, according to state-owned China Daily.

Previously, Suning operates its investment activities across three funds.

Suning Rundong Fund, with RMB5 billion, targets a diverse range of sectors, including technology, media, telecommunications, and the cultural and entertainment industry.

Suning Goldstone Fund, founded in 2014 with RMB4 billion, focuses on retail infrastructure such as physical stores and logistics.

Suning Qingchuang Fund, with RMB300 million, backs startups with a focus on those specializing in emerging industries.

The retail giant invested RMB1.93 billion in smartphone maker Nubia Technology Ltd., a subsidiary of ZTE Group, to take a 33.33% stake in the company in December 2015.

In August 2015, Alibaba Group Holding Limited formed an extensive strategic alliance with Suning to create a far-reaching O2O (online-to-offline) e-commerce platform.

In October 2014, Suning planned to transfer 11 retail stores for RMB4.01 billion (US$650 million) to Goldstone Investment Ltd., the direct investment arm of CITIC Securities to focus on core and profitable assets.