China created a state-controlled venture capital fund

Almaty. August 19. Silkroadnews – China has established a state venture capital fund to support innovations and modernization of enterprises under the central government, «People's Daily» reported.

The publication notes, the new fund volume will reach 200 billion yuan (approximately US$30 billion).

According to the State-owned Assets Supervision and Administration Commission, the initial amount of the fund is 100 billion yuan. It is jointly funded by China Construction Bank Corp (20 billion), China Reform Holdings Corp Ltd. (34 billion), China Postal Savings Bank (30 billion) and Shenzhen Investment Holding Co., Ltd. (16 billion).

Meng Jianmin, Vice Chairman of the State-owned Assets Supervision and Administration Commission, said the capital fund has been approved by the State Council and is designed to facilitate the development of enterprises under the central government through investments in innovations and modernization.

There are over 150 thousand of state-owned enterprises in China, more than a hundred of them are enterprises under the central government. They play a significant role in the Chinese economy, yet experience a decrease in profit.