China is to set up a government venture capital fund worth 40bn yuan (about €5.5bn) to help back the country’s start-ups in emerging industries.
The fund – China’s latest move to kick start its private sector – will draw from the government’s existing capital designated for expansion of emerging industries, as well as state corporates and private partners.
“The establishment of the state venture capital investment guidance fund, with the focus to support fledging start-ups in emerging industries, is a significant step for the combination of technology and the market, innovations and manufacturing,” China’s State Council, the cabinet, said in a statement.
“It will also help breed and foster sunrise industries for the future and promote (China’s) economy to evolve towards the medium and high ends.”
China’s current venture capital market is relatively small following a decade of heavy restrictions on the private-sector firms.