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Zhongguancun platform to introduce $9.8b social investment
( chinadaily.com.cn )
Updated: 2014-12-01

Zhongguancun's financial service platform is expected to attract 60 billion yuan ($9.8 billion) of social capital by the end of this year, according to Zhongguancun Development Group. Construction of the platform began in November 2013. A total of 49.4 billion yuan of social investment was introduced as of September 2014.

The Beijing municipal government will earmark 10 billion yuan in three years to nurture science and technology financial service institutes, products and projects that can amplify the accommodation of funds through government fund guidance, public policy, service and market innovation mechanisms, attract 100-billion-yuan in social funding and financial resources to Zhongguancun, and produce 1-trillion yuan in its output efficiency.

The platform features high-end industry and has established an integrated circuit fund held by the Zhongguancun Development Group, with 4 billion yuan as a first-phase capital injection. Two subsidiary funds for equipment manufacturing and packaging design were also founded.

Xu Qiang, general manager of Zhongguancun Development Group, said that Zhongguancun is now screening a batch of chip design and equipment manufacturing companies, in addition to investing in the second-phase project of the Semiconductor Manufacturing International Co. It will use the integrated circuit fund to increase competitiveness of Beijing's integrated circuit industrial chain.

The platform will also support small and medium-sized enterprises as well as start-up businesses. It has worked with social organizations and set up angel investment funds, such as Huachuang Shengjing, as well as nine venture capital funds, activating nearly 10 billion yuan in social investment.