Chinese fund to set up Thai investment unit

       China Science and Merchants Investment(fund) Management, one of China's leading fund managers, will set up a US$1-billion (Bt33.4 billion) joint-venture account in Thailand next year in a bid to support Chinese investments in Southeast Asia.
       The fund will be a joint venture between Chinese and Thai investors that will be supported by both governments, chairman and CEO Shan Xiang Shuang said yesterday after a meeting with Industry Minister Charnchai Chairungrueng and representatives from the Thai-Chinese Culture and Economy Association.
       He said the fund would be formed to support investments in several businesses, particularly agricultural processing, alternative energy, rubber processing, infrastructure and transportation.
       "We will do our best to lure as many Chinese businesspeople as possible to invest in Southeast Asia, especially Thailand, via this fund," he said. The fund will either offer loans to existing projects or finance joint ventures for new projects.
       Pinij Charusombat, chairman of the Thai-Chinese Culture and Economy Association, said the fund had been established to signify the confidence Chinese investors have in Thailand.
       "On the other hand, Shan is committed to helping Thai investors expand their businesses into China as well. Not only will he offer support in investment capital, but he will also help in terms of business management and technology transfer," he said.
       Former foreign minister Surakiat Sathienthai, who has been invited to advise on the setting up of the fund, said they had created a team to draft a memorandum of understanding that should be singned this year.
       "The fund is expected to take shape by the beginning of next year, and we will be setting up offices in both countries to smooth the twoway flow of investments," he said.
       Surakiat said he was confident in the potential of the fund-management firm, as it is currently managing funds worth more than 20 billion yuan(Bt98 billion), whcih is expected to rise to 150 billion to 200 billion yuan in the next three or four years.
       The company has been operating this business for nine years with branches worldwide. It has also invested in more than 20 businesses such as mining and automotive manufacturing in mainland China.