Ideanomics Inc (NASDAQ:IDEX) announced Friday that it has entered into a 50/50 joint venture with Business Big Data PTE Ltd/Seasail Ventures (BBD) to create an investment company focused on new infrastructure projects in China.
The new investment company will develop an artificial intelligence-enhanced China New Infrastructure bond product, introduce capital, and fund advisory services, according to a statement.
Ideanomics said the investment company will utilize BBD's leading AI technology to provide risk management and selection models for equity and fixed-income products. Its bond product will be the first fund of its kind that enables investors to access value in China's new infrastructure growth.
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It said the seven key development areas for new infrastructure construction are: 5G, ultra-high-voltage (UHV), intercity highways and intercity rail transit, new energy vehicle charging stations, big data centers, AI, and the industrial Internet.
The JV company has plans to create an offshore fund that invests in Chinese bonds and equities that are focused on the New Infrastructure initiative. It will be the first of its kind to take advantage of cross border financial market opportunities and AI.
Ideanomics said BBD will use its AI platform to provide and execute services for the "intelligent" bond and stock risk control and investment decision-making for the JV, including but not limited to designing and maintaining a passive investment index that can be used as a benchmark for overseas exchange-traded funds (ETFs).
Ideanomics said it anticipates that its interest in ETFs will be transferred to the new JV entity in the effort to focus on the main business in its Mobile Energy Global (MEG) division. And the company continues to streamline its operations and expects to announce divestitures of its non-core businesses throughout the year.
Ideanomics, headquartered in New York with offices in Beijing and Qingdao, China, is a global company focused on monetizing the adoption of commercial electric vehicles and developing next-generation financial services and fintech products.
The company's stock recently traded up 6% to $0.40 a share in New York.
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