Shanghai sets up special fund to support scientific innovation

(chinadaily.com.cn)Updated : 2017-09-24

The Shanghai Scientific Innovation Center Equity Investment Fund Management Co was inaugurated at the 2017 Pujiang Innovation Forum on Sept 23, a significant step towards improving the city's investment and financing system for scientific innovation.

The fund, the only one in China named after the Shanghai scientific innovation center, is aimed at raising 30 billion yuan ($4.5 billion) in investment, and 6.52 billion yuan in its first stage alone.

Its investors are state-owned enterprises, including Shanghai International Group, Guosheng Group, Shanghai Trust, Shanghai International Port Group, and Zhangjiang High Tech Park Co.

Fu Fan, chairman of the newly-established fund and president of Shanghai International Group, said that it will bring in financial capital such as securities and insurance firms as well as private capital.

According to an insider, 80 percent of the fund will be used to invest in sub-funds and 20 percent to directly invest in top high-tech firms that are in early or growth stages.

Industries such as information technology, artificial intelligence, biomedicine, advanced manufacturing, high-end equipment, integrated circuit, smart city, environment protection and new energy are preferred for investment.

Zheng Yang, director of Shanghai Financial Service Office, said that the launch of the fund helps promote the integration of technology and finance and the combined development of the Shanghai international financial center and scientific innovation center.

He also said that with the help of the fund, a variety of resources will be brought to the scientific innovation industry to alleviate the fundraising difficulties of small and medium-sized tech companies.

A handful of deals were also reached at the inauguration ceremony, involving industries such as information technology, high-end equipment, new material, biomedicine, and new energy.