Fidelity to launch its biggest China venture capital fund

Global asset manager Fidelity Investments plans to launch its biggest China venture capital fund next year worth at least $250 million despite on-going market volatility, underlining its confidence in the country's growth outlook, a senior executive said.
The new fund will be managed by its unit Fidelity Growth Partners Asia and will invest about half of the capital in healthcare firms and the remainder in consumer and information technology (IT) sectors, Norman Chen, a partner of Fidelity's Greater China investment unit, told Reuters. Unlike most other venture capital firms, Fidelity Growth Partners invests Fidelity's own capital.
"The consumer wave in China is undeniable and we see huge opportunities," Chen said, adding that Fidelity, which has been traditionally focused on healthcare and IT in China, started expanding into the consumer territory over the past year. Fidelity Growth Partners, which has been investing in China for 16 years, is planning the new fund also because it will have fully invested the $450 million in its three exiting China funds by the end of this year, Chen said.