A fund with up to 3 billion yuan ($480 million) in bag was launched by Chinese companies to invest in European medium-sized manufacturers during British Prime Minister Theresa May's visit to Shanghai on Feb 2.

The fund, known as BMC Europe Fund I, expects to guide domestic private capital in mergers and acquisitions of European medical, chemical and environment-protection enterprises, which have advantages in technology, market and profitability.

The major initiator, Shanghai Guohe Modern Service Equity Investment Management Ltd, is subsidiary to Shanghai International Group, a State-owned asset management and financial investment provider.

"The move will create business opportunities and enhance links between European and Chinese manufacturing companies, so as to drive the upgrading of Chinese industrial competence," said Fu Fan, president of Shanghai International Group.

It is also correspondent to the Belt and Road Initiative and Made in China 2025 strategy, the country's manufacturing improvement program, Fu added.

The new fund will have joint headquarters in Shanghai and London.

BMC Europe Fund II, with another 3 billion yuan, will be launched later this year, also aimed at Europe.