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Tech war: Guangzhou pours US$29 billion into funds for semiconductors, other hi-tech fields as local governments boost China’s recovery
- Guangzhou’s Industry Investment Fund of Funds will focus on activities involving semiconductors, renewable energy and advanced manufacturing
- The city’s Innovation Investment Fund of Funds will target financing for early-stage hi- tech companies
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Iris Dengin Shenzhen
The municipal government of Guangzhou, capital of southern Guangdong province, has invested 200 billion yuan (US$29 billion) to establish funds that will help spur activities involving semiconductors, renewable energy and other hi-tech fields in the city.
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This programme follows various technology initiatives recently launched by the municipal governments of Beijing, Shenzhen and Hangzhou to help boost China’s economic recovery, as the country emerges from three years of strict pandemic controls.
Local authorities in Guangzhou announced over the weekend the injection of 150 billion yuan into an Industry Investment Fund of Funds (FoF), which will focus on financing activities in the fields of semiconductors, renewable energy and advanced manufacturing.
The FoF, which will invest via sub-funds and direct financing, aims to attract medium- to large-size projects to Guangzhou and gradually expand into a cluster of funds totalling 600 billion yuan, according to the government statement. An FoF, which is designed to allocate cash to a portfolio of investment funds, is increasingly being used by Chinese local governments to develop preferred industries.
Another 50 billion yuan was set aside by Guangzhou for its Innovation Investment FoF, which will target early-stage hi- tech companies. This fund, which is expected to grow into a cluster worth 200 billion yuan in the next few years, will provide specific support in terms of talent and technology transfer, as well as angel and seed investments to start-ups.
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