The Hong Kong-listed business of a mainland China-based firm continues to expand its investment reach.

A subsidiary of Gold-Finance Holdings, part of China-based wealth management house Gold-Finance Group, has agreed to form a private fund investing in local infrastructure projects. The move follows a recent acquisition by Gold-Finance Holdings, as reported earlier this week. 

Hangzhou Jinkai Yuanguan Investment Management Co, a wholly-owned subsidiary of Gold-Finance Holdings, has entered a limited partnership agreement with Shanghai Dealchord Asset Management and another limited partner to form Zhongzing New Town Industrial Investment Private Fund.

The limited partnership will last for seven years with a target fund size of around RMB800 million ($118.73 million), a statement from Gold-Finance said yesterday. The fund will invest directly or indirectly in local governmental infrastructure projects in the form of a public-private partnership model and other infrastructure-related projects.

Jinkai Yuanguan will contribute RMB200 million to the fund for the participating shares of the fund as a second-class LP, while another LP will contribute RMB600 million. Shanghai Dealchord has to make a required contribution of at least RMB1.00 and is responsible for making investment decisions for and provision of administrative and management services to the fund. Shanghai Dealchord has obtained the necessary licences and qualifications in the People's Republic of China.

As reported earlier this week, Gold-Finance Holdings has bought investment firm Jin Zhong Xing for RMB1.0 billion (around $148 million). (For more on that story, see here.)