Zhaogang, China's biggest B2B platform for steel trading, said yesterday it had raised 500 million yuan (.5 million), with the Russia-China Investment Fund as one of the major investors.
RCIF is the first sovereign wealth fund to invest in China's booming B2B sector. Shanghai-based Zhaogang uses an Internet-based business model for steel trading to enhance distribution efficiency and transparency.
With the injection from RCIF, founded by the two governments with a total investment of billion, Zhaogang can "pursue global expansion in Russia and other regions in the One Belt One Road," said RCIF CEO and president Hu Bing.
Other investors include Huaxing Capital Partners and Beijing-based West Fund, a state-owned fund under steel giant the Shougang Group.
In 2015, the most recent data, Zhaogang's online steel trade volume hit 32 million tons, accounting for 8 percent of its total domestic trade.
China's move from investment-led growth to a consumption-driven model has hit steelmakers. Since 2015, Zhaogang has expanded globally, including into South Korea, Vietnam, Thailand and Singapore.