Guangzhou is the capital of the Chinese province of Guangdong. The huge city’s government has invested 200 billion yuan (US$29 billion) to set up funds to encourage the production of semiconductors, renewable energy and other high-tech industries in the city.
The program follows various technology initiatives recently launched by the governments of Beijing, Shenzhen and Hangzhou to help boost China’s economic recovery as the country recovers from three years of strict coronavirus control, the South China Morning Post reported.
Guangzhou local authorities announced over the weekend that they will invest 150 billion yuan in an industrial investment fund (FoF) focused on financing activities in the fields of semiconductors, renewable energy and advanced manufacturing. The FoF, which will invest through seed funds and direct financing, aims to attract medium to large projects in Guangzhou. Meanwhile, it is trying to gradually develop into a group of funds with a total value of 600 billion yuan. FoF, which aims to inject cash into investment fund portfolios, is increasingly being used by local governments in China to develop preferred industries.
Guangzhou has allocated an additional 50 billion yuan for the Innovation Investment Fund, which targets high-tech companies at an early stage. This fund, which is expected to grow to a cluster of 200 billion yuan in the next few years, will provide specific support for talent and technology transfer, as well as angel and seed investments for start-ups.
The creation of public funds is nothing new in China, where public financial support has helped develop major industries in recent decades. The China Integrated Circuit Industry Investment Fund, also known as the Big Fund, was established in 2014 as the main funding vehicle for the country’s semiconductor industry. The amount of the first round of investment was more than 138 billion yuan. However, last year this fund was involved in a corruption scandal, and criminal proceedings were initiated against several of its leaders.
Last month, the government of east China’s Anhui Province announced the creation of a 200 billion yuan indicative fund focused on technology industries. The same month, the municipality of Xi’an, the capital of northwestern Shaanxi Province, unveiled plans to set up a group of funds worth more than 100 billion yuan to focus on investment in advanced manufacturing.
Hardware, software, tests, interesting and colorful news from the IT world click here!