The Eight Roads venture fund, controlled by the American investment company Fidelity Investments, plans to sell Chinese technology assets amid tensions between Beijing and Washington and the introduction of restrictions on investments in China's advanced technology sector by the United States. This is reported by foreign media.
Eight Roads, one of the first investors in China's Internet sector with assets worth more than $11 billion under management, is considering selling all investments in 40 Chinese technology companies at a discount of 60-80% of their combined value of $1 billion. In particular, the list of assets for sale includes the company for the production of self-driving cars Pony AI Inc.
The proposed deal has attracted interest from several Chinese private and venture capital funds in the technology sector and one of the Hong Kong financial companies. The proposed sale followed a broader downsizing of the company's operations in China and the layoff of more than a dozen China Tech employees in 2024 amid challenges facing American investors in China, including tight scrutiny from Chinese regulators.
In 2024, Eight Roads decided not to invest in Chinese technology companies in response to a change in the regulatory framework, but will continue to manage its portfolio of medical assets in China. Eight Roads has previously invested over $1.1 billion in 130 companies in China and funded 500 companies in India and Japan.
Eight Roads Ventures is a global venture capital company in the field of technology and healthcare. The company provides venture capital investments to support entrepreneurs. Eight Roads, which is owned by the billionaire Johnson family, was spun off from Fidelity International in 2019. The headquarters is located in Bermuda.
Fidelity Investments is an American financial holding company. Fidelity is one of the four largest asset management companies in the world and a subsidiary of FMR Corp. The company is headquartered in Boston, Massachusetts.
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
