The AMP Capital Asian Giants Infrastructure Fund has acquired its first asset in China, taking a 19.11 per cent effective equity stake in Qujing Gas. Qujing Gas holds a 30-year concession to run the gas distribution franchise in Qujing, the second largest city in Yunnan province, southwest China, and the first to have piped natural gas supply.

Australia-based AMP Capital has been investing in Asian infrastructure since 1994, with teams operating in India and China. The firm’s co-head of infrastructure in Asia, Xiao Wei, said the initial investment in Qujing Gas is expected to increase to US$20m.

“The Chinese central government has set a target of increasing gas consumption from 4 per cent to 9 per cent by 2020. Our investment also positions us to take advantage of opportunities to invest in gas distribution growth in other areas of China,” he added.