China's Optics Valley Endows USD7.6 Billion Industry Fund
Dou Shicong
DATE:  Dec 27 2017
/ SOURCE:  Yicai
China's Optics Valley Endows USD7.6 Billion Industry Fund China's Optics Valley Endows USD7.6 Billion Industry Fund

(Yicai Global) Dec. 27 -- Wuhan East Lake High-Tech Development Zone established an industry development fund worth CNY50 billion (USD7.64 billion) yesterday, to be followed by a CNY250 billion fund of funds (FoF) focusing on emerging industries.

The industry fund will initially operate under the direction of local authorities, but market-based operations will gradually supplant government operations, China's state-run Xinhua news agency reported. The fund will invest in unique infrastructure businesses with high externality and small businesses and startups in relevant industries.

These moves will attract more than CNY1 trillion in private investment for high-tech firms in the area. By 2020, financial institutions in the zone will top 5,000, per the local development plan. More than 3,00 equity investment institutions will also set up there with capital under management exceeding CNY500 billion. A modern financial technology system covering a diverse range of fintech businesses will take shape.

The high-tech park's administrative committee started building financial infrastructure in 2011 and has issued over 20 fintech-related policies to date. The local government has invested over CNY1 billion in the project. The zone is now home to more than 3,000 financial institutions with assets under management totaling some CNY300 billion.

Inaugurated in 1988, Wuhan East Lake High-Tech Development Zone was designated the Optics Valley of China by the country's science and technology ministry in 2001. It is the largest optical fiber cable production base and optoelectronics research and development base in China.

 

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Keywords:   Wuhan East Lake High-Tech Development Zone,Optics Valley,Industrial Development Fund