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Chinese state-owned company launches 2 crypto funds in Hong Kong – Bitcoin News
One of China’s leading insurance companies has backed the establishment of two crypto investment funds in Hong Kong. The business move comes against the background of the region’s ambitions to become a hub for digital assets, and despite the negative regulatory attitude towards the market on the mainland.
Chinese insurance giant enters crypto space through subsidiary in Hong Kong
A Hong Kong-based company, part of China Pacific Insurance Company (CPIC), has teamed up with Waterdrip Capital and established two investment funds in the special administrative region that will concentrate on the industry built around blockchain technologies and crypto-assets.
CPIC is China’s third largest state-owned insurance company, Chinese crypto journalist and blogger Colin Wu, also known by the Twitter handle ‘Wu Blockchain’, noted in a post on Monday, citing a report by Chinese news agency 36kr.com.
China’s third largest state-owned insurance institution Pacific Insurance Investment Management Hong Kong Branch and Waterdrop Capital launched a compatible blockchain venture capital fund and POS token income enhancement fund in Hong Kong.
— Wu Blockchain (@WuBlockchain) 3 April 2023
Waterdrip is an international investment institution that supports blockchain-oriented projects and crypto startups such as Polkadot, among others. It was founded in 2017 by “the most forward-thinking Chinese blockchain pioneers,” according to its website.
The companies have launched two funds for investments in the sector – a venture capital fund called Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II, also referred to as ‘POS Token Income Enhancement Fund’.
The first will invest in the early stages of new projects focusing on the development of blockchain infrastructure, decentralized finance applications, Web3, metaverse and non-fungible token (NFT) apps, while the second will mainly hold digital assets based on the proof -of -stake (POS) consensus mechanism.
The main objective behind the initiative is to provide investors with more diversified and innovative investment options. The target group for the funds will include institutional investors such as companies and family offices as well as individual investors with a high net worth.
The central government of China has cracked down on crypto-related activities in the People’s Republic, but there have been indications that Hong Kong’s plan to become a major hub for digital assets has support from Beijing. A recent report from Bloomberg revealed that China’s state-owned banks have opened their doors to crypto companies coming to the region.
Do you expect more Chinese state-owned companies to get involved in Hong Kong’s growing crypto market? Tell us in the comments section below.
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