China launches venture capital fund to lead the charge on tech investment
The fund, which will put state-backed money behind early tech bets, could guide trillions of yuan in private capital to chosen sectors
China has launched a national fund designed to channel state-backed money into early-stage bets on tech, a move officials said could ultimately steer trillions of yuan into preferred avenues of investment.
At the ceremony, an official from the Ministry of Finance said the new fund differs from earlier programmes in three ways: more fiscal backing, a sharper investment mandate and stronger capital-multiplier effects.
To match the long research and development periods typically seen in hard tech, the fund’s investment cycles are designed to last roughly 15 to 20 years.
Structurally, the programme will have a three-tier structure, with the national guidance fund at the top above regional funds and sub-funds. It will raise money at the regional and sub-fund levels from local governments, financial institutions and enterprises, both state owned and private.
“Hundreds of billions in fiscal funding is expected to leverage trillions in broader social capital,” the finance ministry official said.
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The official added that the ministry will use government guidance funds to “deliver a targeted leveraging effect”, while insisting on market-oriented operations and professional management.