Mizuho Securities, a subsidiary of Japan’s second-largest lender Mizuho Financial Group, will establish a technology investment fund in China in partnership with two local venture capital firms, according to a report by the Nikkei. Mizuho Securities is said to have made an initial $20-million commitment to the fund, which will be managed by Cybernaut Investment Group and New Frontier Capital Management (Hong Kong), in which the Japanese brokerage house is a shareholder.
The new fund will focus on investments in technologies such as artificial intelligence and fintech. Mizuho and Cybernaut expect to expand the portfolio to about $300 million, the report said. In an attempt to boost its services for corporate clients abroad, Mizuho plans to help Japanese firms partner with and invest in Chinese startups.