The South China Morning Post reports that the local government in Shanghai’s Huangpu district has established a renminbi-denominated fund to invest in a curated list of 187 fintech, artificial intelligence (AI), and biotech firms. This fund, expected to be operational within the next 12 months, will be managed by an investment organization established by the government and will focus on high-growth start-ups and listed firms within the 20.5 sq. km. area of Huangpu.
Government Efforts to Stimulate High-Tech Industries
This strategic move is part of the government’s broader efforts to stimulate high-tech industries, especially in the context of US government actions to restrict US investments into Chinese entities. The fund aims to provide a local source of capital for innovative companies in fintech, AI, and biotech sectors, which are crucial for driving economic growth and technological advancement.
Supporting Local Companies and Easing IPO Requirements
The establishment of the fund comes alongside other measures introduced in February this year to ease the minimum requirements for companies seeking to raise funds through initial public offerings (IPOs) on mainland China stock exchanges. These measures are designed to make it easier for tech companies to access capital, thereby fostering innovation and competitiveness within the region.-Fineline Info & Tech
