Billionaire Johnson family’s VC fund to exit China tech holdings - report

[United States and China]
bymuratdeniz

A venture capital fund backed by Fidelity Investments’ billionaire Johnson family plans to unload its Chinese technology holdings amid heightened tensions between Beijing and Washington, _Bloomberg_ reported, citing people familiar with the matter.

Eight Roads, Abigail Johnson’s family firm that was an early investor in China’s internet sector, began exploring the sale of all its investments in about 40 Chinese tech companies earlier this year, the people said.

The companies are being sold at a discount ranging from 60% to 80% of their peak valuation, which was about $1 billion combined. The negotiations are ongoing and could be subject to change, the report [https://news.bloomberglaw.com/private-equity/billionaire-johnson-familys-vc-fund-to-exit-china-tech-holdings?utm_source=rss&utm_medium=PENW&utm_campaign=00000197-57b6-d64c-abd7-57be0bc30000]added.

The stakes include that of self-driving car company Pony AI (NASDAQ:PONY [https://seekingalpha.com/symbol/PONY]), which Eight Roads still holds due to a lockup period, the report added.

Eight Roads made a decision last year to not actively pursue new investments in China tech companies in response to the changing regulatory environment, a spokesperson said in a statement to Bloomberg News.

Trade tensions between the world's two largest economies rose this year after Trump raised tariffs on Chinese goods, triggering retaliation from Beijing.

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