China Telecom Corporation Limited (00728) has announced that its controlling subsidiary, Quantumctek Co., Ltd., plans to utilize its own funds to jointly establish an investment fund with entities including China Telecom Quantum Enterprise Management and China Telecom Investment.

The fund will be named "China Telecom Quantum Industry Venture Investment Fund (Limited Partnership)", subject to final industrial and commercial registration.

A wholly-owned subsidiary of China Telecom Investment, China Telecom Private Fund Management Co., Ltd., will serve as the fund manager, while China Telecom Quantum Enterprise Management will act as the fund's executive partner.

The fund's committed capital totals 15 billion yuan. Quantumctek will contribute 3 billion yuan in cash, representing a 20% stake.

The fund's primary focus will be venture capital and equity investments in early-stage and growth-stage companies operating within the quantum information technology sector and other strategic emerging industries in China.

It may also pursue other investment opportunities deemed beneficial by the general partner.

A principal portion of the fund's total capital is intended for investment in quantum information technology-related venture projects.

As a guideline, investments in projects at the A-round financing stage or earlier should constitute no less than 50% of the total number of investments and no less than 30% of the fund's total capital.

Furthermore, investments in projects external to central state-owned enterprises should account for no less than 50% of the total number and no less than 30% of the total capital deployed.