SHENZHEN’S government-guided fund will invest up to 2.45 billion yuan (US$377 million) to establish five funds in collaboration with fund management firms to support the development of emerging industries in the city, the 21st Century Business Herald reported yesterday, citing a government statement.

The move comes after Shenzhen’s financial regulatory bureau unveiled supportive measures April 7 to spur venture capital investment in the city’s strategic emerging industries, with financial rewards up to 20 million yuan being offered to eligible venture capital firms.

The new funds, which are expected to total 11.5 billion yuan, will be managed by companies including Shenzhen Skyworth Investment Management, Cowin Capital, and Shenzhen Co-Stone Asset Management.

The investment scope of the funds will include the new generation of information technology, biomedicine, intelligent equipment, and energy-saving and eco-friendly industries.

Set up in 2015 by the city government and managed by Shenzhen Capital Group Co., Shenzhen’s government-guided fund has a target size of 100 billion yuan. It had teamed up with 81 venture capital companies in establishing 76 funds by August last year, with 51 of the venture capital firms being based in Shenzhen.

The city’s angel fund of funds (FOF), an angel investment vehicle funded by Shenzhen’s government-guided fund, had invested in 56 funds and tied up with 56 venture capital firms by August last year, with 36 of the venture capital firms being based in the city. The angel FOF made 15 investments last year, becoming one of the most active government guidance funds in China.(Liu Minxia)