Azernews.Az

By Bloomberg

Qatar's sovereign-wealth fund plans to set up a $10 billion investment venture with China's Citic Group as part of a push into Asia.

The pair signed a memorandum of understanding today for a joint fund, with the deal to be finalized in coming months, Ahmad Al-Sayed, chief executive officer of the Qatar Investment Authority, told reporters in Beijing. Each will put in $5 billion, he said.

Qatar has invested billions of dollars in China and Asia this year, including in Citic, Alibaba Group Holding Ltd. and Hong Kong department-store owner Lifestyle International Holdings Ltd., Al-Sayed said in a statement. The Qatar fund plans to put $15 to $20 billion into the region in the next five years and will expand offices in Beijing and New Delhi, he said.

Qatar Investment Authority is an investor in Citic Capital Holdings Ltd., an alternative investment company backed by the state-owned Citic Group and China's sovereign wealth fund and focused on private equity in Japan, China and the U.S. and real estate in China.

In 2010, Qatar Investment Authority bought $2.8 billion of Agricultural Bank of China Ltd. shares during its initial public offering. While the fund has trimmed its stake this year, Al- Sayed said today that it's not exiting.

"We see real long-term investment potential in companies here in China," Al-Sayed said. Besides the push into Asia, the Qatar fund will open an office in New York, he said.

In May, Qatar Investment Authority was among investors who bought $5.1 billion of shares in Citic Pacific Ltd., which was acquiring assets from its parent as part of China's drive to restructure state-owned enterprises. In 2013, the Qatari fund hired Michael Cho, a former co-head of Asia mergers and acquisitions at Bank of America Corp., to help lead its dealmaking.