(Yicai Global) Sept. 21 -- The Xinjiang Production and Construction Corps, also known as Bingtuan or the XPCC, two of its subsidiaries and a venture capital firm have set up the Xinjiang Bingtou New Margin Ventures Equity Investment Fund, worth CNY1.5 billion (USD230.7 million), in order to push industry optimization and upgrade the economic and paramilitary organization.

Bingtuan, Shanghai NewMargin Ventures Management Co., State-Owned Assets Management Co.'s XPCC Eighth Division and XPCC Twelfth Division Tenever Co. set up the fund, which is the first industry mergers and acquisition fund in Xinjiang, state-owned news agency Xinhua reported.

The three XPCC firms poured CNY300 million into the fund, while Shanghai NewMargin Ventures raised CNY1.2 billion through external funds.

The new fund will focus on new materials, new energy, health, consumption and other industries, said Han Yuze, managing partner at Shanghai NewMargin Ventures and general manager of Xinjiang Bingtou NewMargin Ventures Equity Investment Management Ltd., which will operate the fund. The fund will reserve merger and acquisitions targets for the 13 listed companies under XPCC, promote industry upgrades, enhance the core competitiveness of the Corps' listed units, promote supply-side and state-owned enterprise reforms in Xinjiang and contribute towards poverty alleviation, he added.