The government of Beijing has established an RMB 30 billion ($4.6 billion) fund that will invest in high-level technology innovations worldwide, with plans to increase the corpus further to RMB 100 billion ($15 billion) in the future, according to a Xinhua report.
The fund, Sci-Tech Innovation Investment Fund of Fund, will be managed by Beijing Science & Technology Innovation Investment Management set up by the Beijing Municipal Science & Technology Commission.
It will focus on 14 advanced technology sectors such as photoelectric technology, next-generation information technology, nanotechnology, new strategic materials, new energy, biopharmaceuticals, intelligent manufacturing, modern agriculture, and transportation.
The fund will also invest in energy conservation and environmental protection, brain cognition and brain-inspired intelligence, quantum computation and communication, big data and artificial intelligence.
According to a Yicai report, the fund will be distributed at a ratio of 5:3:2 for projects at three phases of development, namely original innovation, results applications, and advanced industries.
According to reports, Beijing Government Guidance Fund will invest Rmb12 billion ($1.3 billion) to the fund while Zhongguancun Development Group, Beijing Capital Technology Development Group, Beijing State-owned Capital Management Center, and Beijing E-Town International Investment & Development will each contribute Rmb1.95 billion ($298 million).
Beijing Science & Technology Innovation Investment Management will contribute Rmb200 million ($30.6 million).
Chinese banks Bank of Beijing, Huaxia Bank, and Beijing Rural Commercial Bank will contribute Rmb5 billion ($765 million), Rmb2 billion ($306 million), and Rmb3 billion ($459 million), respectively.
Yang Li, general manager of Beijing Science & Technology Innovation Investment Management Ltd, was quoted as saying that the fund’s single investment size will not be more than Rmb500 million ($76.5 million) and that the duration of the sub-fund will be about 15 years, including six years of investment and nine-year of exit period.