SHANGHAI, Aug 18 (Reuters) - China’s state council has approved a 200 billion yuan ($30.19 billion) venture capital fund to invest in innovative technology and industrial upgrading projects, the country’s state assets regulator said on Thursday.
China has been encouraging its industrial firms to rise up the value chain through technical innovation and tougher efficiency standards, with the aim of creating globally competitive conglomerates. It has vowed to be more selective in the way it disburses funds, and aims to cut off credit for non-competitive firms that are unable to upgrade.
The fund is financed by China Reform Holdings Corp Ltd, China Postal Savings Bank, China Construction Bank Corp and Shenzhen Investment Holdings, the notice posted on State-owned Assets Supervision and Administration Commission’s (SASAC) official Weibo platform said.
The main sponsor and controlling shareholder is China Reform Holdings Corp Ltd, according to the notice.
The fund will implement national strategies, it added.
$1 = 6.6255 Chinese yuan renminbi Reporting by Engen Tham and David Stanway; Editing by Gopakumar Warrier