Chinese and Israeli investment groups signed this weekend a contract to establish a Chinese-Israeli venture capital fund. The Israeli investors, including main shareholder Polar Investments, will hold 60 percent of the joint venture, while the Shanghai Science and Technology Investment Corporation (SSTI) will hold the remaining 40 percent.
In addition to Polar Investments, the Israeli company includes Amos Lasker, former MED1 CEO, Attorney Yaakov Yisraeli and others.
SSTI runs an investment portfolio of some 50-technology firms, five already went public on the Hong Kong and Singapore stock exchanges.
The joint venture will be called Dragon and focus on investments in Chinese technological enterprises, and particularly on government-owned and export-oriented companies set to undergo privatization.
Dragon has already raised $10 million for the first stage, and plans to raise another $90 million in the second phase. The day-to-day management of the firm will be entrusted at the hands of the Israeli partners, who will also have the prerogative to assign the company's chairman and CEO.
Decisions pertaining to investments, however, will be made jointly by both sides.