China's government establishes $30 billion VC fund: Report

One of the fund's reported goals is to fund technological innovation, reports Tech in Asia

Is China’s venture capital (VC) market about to get a major new player? According to China’s Economic Observer, insiders say that the government has approved the establishment of a state-owned $30 billion VC fund in Shenzhen.

According to the report, the fund will launch with an initial sum of $15 billion, but a planned increase will raise that total to $30 billion eventually. The company was supposedly registered on August 8 – an auspicious day because the number eight is considered good luck in China – and the official announcement was supposed to come on August 18.

One of the fund’s reported goals is to fund technological innovation, which suggests a good chunk of that $30 billion could find its way into China’s tech market.

If this report proves true, the new fund will be only a small part of China’s state-owned VC funding, though. Another state-owned VC fund already has over $300 billion to throw at start-ups, and of course the state has a stake in myriad other companies and funds that can be used for venture investment. This is an article from Tech in Asia. You can read the original here