An investment fund worth $500 million (£311.5 million) has been announced to encourage UK SMEs to launch in China.

An investment fund worth $500 million (£311.5 million) has been announced to encourage UK SMEs to launch in China.

Hong Kong-based private equity company First Eastern Investment Group, led by founder and chairman Victor Chu, has backed the fund, which will be named the UK China Fund, with $100 million of its own money.

The fund will start investing immediately and was launched at the International Finance News Institute World Summit in Beijing during Prime Minister’s visit to the country.