China Merchants Capital and Russia's Vnesheconombank signed a memorandum of understanding on Tuesday with a view to financing joint projects and creating high-tech and innovation funds.

The parties are considering setting up to invest in a fund in Russian companies, including those focused on exports.

"Russia is an important participant in the Belt and Road Initiative and the signing of the MoU between VEB and CMC is undoubtedly fostering strategic cooperation and alignment between Chinese and Russian economies," said Anthony Yang, general manager of CMC SINO-BLR Fund.

The signing ceremony took place during the visit of the delegation of Vnesheconombank to Shenzhen. The MoU was signed by Li Yinquan, chairman of China Merchants Capital, and Sergei Gorkov, his Russian counterpart from Vnesheconombank.

The delegations attended the business incubator of China Merchants Space and shared best mechanisms and practices for implementing innovative projects.

"We look forward to working closely with our Russian partners toward mutually beneficial goal of contributing to prosperity of both nations," Yang said.

Gorkov said, "China Merchants Co is part of China Merchants Group, which has nearly 150 years' experience of contributing to the development of the Chinese economy. It has participated in the construction of the majority of existing business accelerators and innovation development zones in China.

"Vnesheconombank has been attracting Chinese funding for most forward-thinking high-tech projects that are implemented in Russia and oriented to the Chinese and global markets. I am sure that China Merchants Group will provide serious support to Russian innovation products in the Chinese market."