The Chinese government appears to be more bullish on the cryptocurrency industry than one might think, as a major state-owned company is reportedly launching a new cryptocurrency fund.
CPIC Investment Management, a subsidiary of China Pacific Insurance (CPI), is launching two cryptocurrency funds in partnership with investment firm Waterdrip Capital, local tech news outlet 36Kr reported April 3. CPI is jointly held by the Chinese central government, Shanghai Municipal Government and China Securities Finance Corporation, and 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 Pacific Waterdrip Digital Asset Fund I, which will focus on investments in early-stage blockchain projects. A second fund, Pacific Waterdrip Digital Asset Fund II, will reportedly manage proof-of-stake digital assets. The firm confirmed the news on Twitter on Monday, saying that the launch of the two joint crypto funds is related to the implementation of incentives related to virtual assets by the Hong Kong government. CPIC did not immediately respond to Cointelegraph's request for comment. Articles will be updated with new information.
The news comes as the Hong Kong government increasingly focuses on developing local cryptocurrency infrastructure, differentiating its approach to cryptocurrency regulation from China’s 2021 cryptocurrency ban. In late March, online reports indicated that some cryptocurrency companies in Hong Kong were gaining attention from Chinese state-owned banks.
