Enterprise-development fund almost ready for launch

The framework of China's national small- and medium-sized enterprise-development fund has been finished, and it will be in place before year's end.

The Economic Information Daily on Thursday quoted the Ministry of Finance as saying that the fund's main purpose will be encouraging investment in emerging and national-characteristic industries, such as traditional Chinese medicine. The fund will cooperate with excellent venture-capital and private-equity firms in China to invest in deals.

According to the paper, the capital of the fund will come mainly from the central government' budget and social donations. The central government will invest in the fund 15 billion yuan ($2.36 billion), 3 billion yuan of which will be in place in 2012. Companies and individuals in the fund can take advantage of tax-preference policies.