Demonstrating the ambition of Chinese mobile game companies, Ruijie Li, the chairman of ZQgame, announced a new M&A fund.

Talking through a translator on the second day of the GMGC 2014 conference in an officially 'hazardous air' Beijing (please bring your respirators), Li said the ZQgame was working with venture capital partners to launch the fund.

The fund will have $80-$110 million (RMB 500 - 700 million) of cash to invest with developers, publishers, apps, distribution, and services.

Big play

"If you have a clearly defined business model, we are interested," said Li.

Investing in early stages, the fund will initially take a non-controlling stake in companies; between 30-49 percent.

"We will do this for 2 to 3 years and then purchase successful companies outright for a better value," Li explained.

In conjunction with this announcement, ZQgame is looking for more development partners.

"We will launch over 20 mobile games in 2014," he said. "We can offer partnerships in China and overseas markets like the US, where we have had first successful release."

ZQgame will also announce a cloud-based service for mobile game developers in 2014.