(Yicai Global) July 31 -- Shanghai has opened its first 'fund town' with a batch of companies looking to shell out a combined CNY50 billion (USD7.3 billion) opting to settle in the area.

The Hongqiao Venture Capital Harbor opened in Minhang district on July 30, news site The Paper reported. The area will focus on gathering and managing venture capitalists to form a financial industry base.

Eight funds will strategically support the town and enterprises based in the harbor will be first in line for their money, said Zhang Saimei, general manager at Shanghai Innovital Capital. Cenova Ventures, Yitian New Energy Industry Fund and Shanghai Venture Capital Association are among those moving into the town, he added.

The 83,411 square meter hub replaces a cluster of foreign consulates operated by Innovital, a financing and investment platform set up by the Shanghai government. The first phase of construction includes 48 offices, including nine display properties, and sports and recreational facilities and is pegged for completion at the end of this year. The entire project, which will add on 111 detached homes, is set to finish in June.

Editor: James Boynton