China will be creating a government venture capital fund worth 40 billion yuan (US$6.5 billion) to support start-ups in emerging industries.
"The establishment of the state venture capital investment guidance fund is a significant step for the combination of technology and the market, innovations and manufacturing," reported Reuters citing China's State Council's (the cabinet) statement on 14 January 2015.
The cabinet added that the move aims to support China's private sector and foster innovation. "It will help breed and foster sunrise industries for the future and promote the economy to evolve towards the medium and high ends," it said, referring to sectors that the government is promoting such as technology and green energy.
Even though the government did not reveal a timetable, Reuters predicts that such fund could be established within a few weeks after an announcement.
The planned fund would be funded by the government's existing capital designated for expansion of emerging industries and by state corporates, while also inviting private partners to participate, said the cabinet. It added that the fund will render public tenders to invite high processional asset managements to operate, with returns giving priority to private investors.
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