China sets up state-backed VC high-tech funds

BEIJING Oct 30 (Reuters) - China's top economic planner said on Friday that it has launched 20 venture capital funds jointly with 7 provincial governments to invest in the country's growing high-tech sector.

The National Development and Reform Commission, the powerful planning agency, did not say how much money would be allocated to the funds.

Investments will focus on electronic and information industries, the biological and pharmaceutical sector and environmental and energy-related projects, the statement said.

The 7 provincial-level governments included in the venture capital scheme are Beijing, Jilin, Shanghai, Anhui, Hunan, Chongqing and Shenzhen.

"The purpose of setting up the funds is to direct capital to invest in competitive high-tech enterprises and to improve their capacity for innovation," the NDRC said in a statement on its website (www.ndrc.gov.cn). (Reporting by Aileen Wang and Simon Rabinovitch; Editing by Jacqueline Wong)