Press Releases

Bank Leumi today signed a first-of-its-kind cooperation agreement with China Resources Capital Management (CRCM), the investment and asset management arm of China Resources Group (CR), one of China's largest state-owned holding companies. Under the agreement, CRCM will invest in Israeli high-tech companies, which have the potential to penetrate the Chinese market, through a designated high-tech investment fund, with minimal investment of USD 10 million in each Israeli company.

The agreement was signed in Hong Kong in the presence of Bank Leumi's Chairman, Mr. David Brodet, and CRCM's CEO, Mr. Carl Qin.

As part of the agreement, LeumiTech, the hi-tech banking arm of the Leumi Group, together with Leumi's representative office in China, will serve as a bridge connecting between customers of Leumi Group and China Resources Group. Israeli high-tech companies - with the potential and interest in penetrating the Chinese market - will be presented to CRCM. The companies that will be found most suitable will receive funding through a dedicated investment fund called China Resources Deep Tech Fund, which was established by CRCM in order to identify and bring new technologies into China.

In addition, CRCM will assist the selected Israeli companies in penetrating the Chinese market by implementing their technology in one of CR Group's subsidiaries operating in China, in various fields, including healthcare, urban construction & operation, consumer products, energy services, technology and finance.

The background to the agreement stems from Leumi's desire to leverage the Bank's capabilities in general, and LeumiTech's in particular, in order to assist Israeli high-tech companies to penetrate the Chinese market, through a cooperation with a major Chinese entity that will not only provide funding, but will also provide support to local business expansion, which is highly necessary for those companies in order to operate successfully in China.

Mr. David Brodet, Chairman of Leumi, commented: "This cooperation agreement is yet another step in deepening Leumi's activity in China, through our representative office in Shanghai, in order to assist Israeli companies in entering and operating in this huge market, as well as increasing the trade volume between the two countries".

Mr. Hanan Friedman, Head of Leumi's Strategy Division, commented: "The agreement with China Resources is another significant achievement in Leumi's strategic plan to expand its operations in China, via collaborations with leading local players. This cooperation follows agreements we have already signed with UnionPay, the world's second-largest credit card company, Ping An - the world's largest insurance company, Bank of China, and Tencent".

Mr. Carl Qin, CEO of CRCM, said: "This deeper cooperation between China Resources and Bank Leumi will further promote Hi-tech development in China and Israel. We will combine our business strengths – including China Resources’ vast operations in China alongside Bank Leumi’s leadership in the Israeli high-tech industry – to create good synergy and further enhance the friendly relations between China and Israel".

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About China Resources (CR):

Established in 1938, China Resources is a holding group owned by the Chinese government. It was ranked 86^th in the world on the 'Global Fortune 500' list for 2018.

CR's headquarters are located in Hong Kong. The company has approximately 450,000 employees and manages assets totaling USD 181 billion.

In 2006, the group established China Resources Capital Management (CRCM), an investment company that currently manages funds with assets under management of over USD 15 billion.

One of CRCM's new funds is China Resources Deep Tech Fund, which was established in order to identify and invest in technology companies all over the world, with the aim of bringing and implementing innovative technologies into China. Today, the fund manages assets exceeding half a billion dollars.