(Yicai Global) Aug. 6 -- Japanese cosmetics giant Shiseido plans to establish mainland China’s first investment fund for cosmetics and wellness brands this year, online news outlet The Paper reported today.

The Ziyue Fund will be set up in conjunction with alternative asset manager Boyu Capital, the report said, citing a statement made by Tokyo-based Shiseido yesterday. Shiseido will be the sole backer of the fund. The size of the investment was not mentioned.

The Ziyue Fund will focus on fast-growing sectors of the Chinese market, including medical beauty and orally-taken products, said Zhou Taosheng, senior vice president of the China business innovation and investments office at Shiseido.

The company’s in-depth participation in local innovations is very important, said Kentaro Fujiwara, president of Shiseido China. He hopes that the move will accelerate the growth of Shiseido in China and start a new chapter in the company’s development in the country.

Shiseido will further enrich its skin care product portfolio in China and will debut a high-end skin care range for men this year, Fujiwara said.

Shiseido’s sales in China jumped 44.1 percent in the first half from the same period last year to JPY144.1 billion (USD1.3 billion), accounting for just over a third of global sales, the cosmetics giant said yesterday.

Shiseido, which has operations in 120 countries worldwide, was the first international cosmetics group to enter China in 1981. Since then it has built two research and development centers and two factories and hires about 9,500 people.

Editor: Kim Taylor