Beijing to Drive Innovation With USD4.6 Billion Sci-Tech Fund of Funds
Tang Shihua
/SOURCE : Yicai
Beijing to Drive Innovation With USD4.6 Billion Sci-Tech Fund of Funds

(Yicai Global) June 25 -- Beijing's municipal government has set up a fund of funds in China's capital to the tune of CNY30 billion (USD4.6 billion) aimed at spurring on innovation in the science and technology sectors.

Half of the Sci-Tech Innovation Investment Fund of Fund will be used to boost basic research for original innovations, Economic Observer Online reported.

The FOF 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. The fund will increase to the CNY100 billion in the future.

STII FOF, a government-led equity investment FOF, will form between synergies with angel investors as well as venture capitalists, and colleges and universities, scientific research institutions and innovation-based enterprises.

The fund will focus on photoelectric technology, next-generation information technology, nanotechnology, new strategic materials, new energy, biopharmaceuticals, intelligent manufacturing, modern agriculture and transportation, as well as energy conservation and environmental protection, brain cognition and brain-inspired intelligence, quantum computation and communication, big data and artificial intelligence.

"The sub-funds for the Science & Technology Innovation Investment Fund for original innovations may have a 15-year duration," said Yang Li general manager of Beijing Science & Technology Innovation Investment Management. "A single investment usually will not exceed CNY500 million and the participation ratio for the sub-fund will not surpass 30% in general. For the sub-funds in the original innovation phase, while the participation ratio could fall to between 30 percent and 50 percent."

Beijing Government Guidance Fund will contribute CNY12 billion to the FOF, Zhongguancun Development Group, Beijing Capital Technology Development Group, Beijing State-owned Capital Management Center, and Beijing E-Town International Investment & Development will each contribute CNY1.95 billion, and Beijing Science & Technology Innovation Investment Management will contribute CNY200 million.

Bank of Beijing, Huaxia Bank and Beijing Rural Commercial Bank will contribute CNY5 billion, CNY2 billion and CNY3 billion, respectively.

Editor: William Clegg

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Keywords: Government Investment Funds , R&D , Innovation , Beijing