Changhong to invest in 'smart families'

Changhong Electric Co Ltd's display was an entertaining attraction at the Canton Fair. [File photo / Provided to China Daily]

Changhong, one of China's leading electronics manufacturers, is expected to team up with private equity firm China Broadband Capital to set up a venture capital fund.

The fund is expected to manage 250 million yuan ($41.03 million) and it will focus on making investments in cloud computing, big data, smart devices and the Internet, according to a report from National Business Daily.

"It is only one step in our strategy of embracing the Internet era. With a goal to set up a business empire producing various products that will be needed in 'smart families', we will have more projects involving cloud computing and big data," said Liu Haizhong, head of Changhong's planning department.

Industrial insiders said that amid the fierce competition in the smart home appliance sector in China, it is a good move for Changhong to cooperate with others in order to gain more market share.

Founded in 2006, China Broadband Capital is a private equity firm with a focus on media and communications investment. CBC now manages two US dollar funds worth over $500 million, and a renminbi fund in parallel with more than 1.4 billion yuan.