Technology Financial Group, an investment vehicle of the Guangdong provincial government, has launched a fund with a target of 20 billion yuan ($2.8 billion) that will focus on investments in the country’s Greater Bay Area.
The fund, dubbed Strategic New Economy Industrial Development Fund of Guangdong Province, was officially registered on April 1. It has so far secured 3 billion yuan ($427 million) in initial commitments, the state-owned investment firm said. It did not disclose any investor names.
Technology Financial will team up with a group of state-owned investors such as clean energy group China General Nuclear Power Corporation, Guangzhou Port Group, and China Telecom to launch sub-funds focused on energy, tourism, maritime, big data and blockchain, among others.
Additionally, the investment firm will partner with top enterprises and institutes such as technology giant Huawei, theme parks developer OCT and the Chinese Academy of Sciences.
The fund comes at a time when the local government is sharpening focus on nurturing the new economy ecosystem in the Shenzhen and Greater Bay Area, an integrated economic and tech innovation hub that consists of Guangdong, Hong Kong, Macau and nine other cities.
Set up in 1992 by state-owned Assets Supervision and Administration Commission of Guangdong Province, Technology Financial operates as a venture capital institution offering services including asset management and investment services.
Seeking to fuel technology and innovation-driven enterprises in the province, the Guangzhou-headquartered Technology Financial said it supported more than 60 companies and managed nine government-led funds as of 2018. Currently, the group has an aggregate of 36.6 billion yuan ($5.2 billion) in assets under management.
Apart from the latest fund, Technology Financial plans to set up three other billion yuan funds to accelerate technology innovations across the region.