Haitong Securities to set up M&A fund

China's second-largest brokerage Haitong Securities Co plans to launch a 10 billion yuan ($1.60 billion) fund for mergers and acquisitions, the official Securities Times reported on Thursday, citing unnamed sources.

The fund will be jointly invested and operated by the State-owned Shanghai Industrial Investment (Holdings) Co and Orient International Enterprise, among several other firms.

The fund, which plans to raise 3 billion yuan in its first round of fundraising and 10 billion yuan in total, will focus on firms in industries such as manufacturing, infrastructure, and energy.

Haitong Securities will be the second domestic brokerage to launch an M&A fund in China, following CITIC Securities Co in October 2012.