Chinese state insurance firm launches two crypto funds in Hong Kong: Report
The Chinese government appears to be more bullish on the cryptocurrency industry than one might think, as a major state company is reportedly launching new cryptocurrency funds.
CPIC Investment Management, a subsidiary of China Pacific Insurance (CPI), is launching two crypto funds in partnership with the investment firm Waterdrip Capital, the local tech-focused news agency 36Kr reported on April 3.
Owned by the central government of China, the Shanghai municipal government and China Securities Finance, CPI is the second largest property insurance company in mainland China after the People’s Insurance Company of China.
The new crypto funds reportedly include a venture capital fund called the Pacific Waterdrip Digital Asset Fund I, which will focus on investments in early-stage blockchain projects. The second fund, the Pacific Waterdrip Digital Asset Fund II, will reportedly manage proof-of-stake digital assets.
According to the report, the new crypto funds will target institutional and wealthy private investors.
Waterdrip is a global investment institution supporting blockchain-related projects and crypto startups. Founded in 2017, Waterdrip is known for supporting the Chinese crypto mining industry and investing in projects like Polkadot-based decentralized Web3 network Peaq.
Related: Hong Kong’s crypto rules set a high bar for ‘good reason,’ says SFC adviser
The firm took to Twitter to confirm the news on Monday, stating that the launch of the two joint crypto funds relates to the implementation of incentive policies related to virtual assets by the Hong Kong government.
With the implementation of incentive policies related to virtual assets by the Hong Kong government, CPIC Investment Management (HK) Company Limited and Waterdrip Capital jointly launched a digital asset fund.https://t.co/OeyulJNbo6
— Waterdrip Capital (@waterdripfund) April 3, 2023
CPIC did not immediately respond to Cointelegraph’s request for comment. The article will be updated pending new information.
The news comes amid the government of Hong Kong growing increasingly committed to developing local cryptocurrency infrastructure, distinguishing its crypto regulation approach from China’s crypto ban enforced in 2021. In late March, online reports suggested that some crypto firms in Hong Kong have been increasingly attracting interest from Chinese state-owned banks.
Magazine: Asia Express: US and China try to crush Binance, SBF’s $40M bribe claim