According to Xinhua News Agency, China’s National Development and Reform Commission and Ministry of Finance are planning to create venture capital funds to support businesses with high growth potential and industrial restructuring.
Within the framework of the plan, each fund would have a minimum size of approximately US$37m (RMB 250m yuan) and would be managed by experienced venture capital managers.
The central government would have a maximum 20% share in each fund with similar contribution from local governments.
The rest would be raised from the private sector.
Early in October, local news reported that China would have launched 20 venture capital funds in seven local regions to invest in high-tech companies and to push forward self-innovation across the country in sectors including electronics, IT, biotech, pharmaceutical industry and projects related to energy conservation and environmental protection.
FinSMEs
27/10/2009