SHANGHAI (Reuters) – Shanghai has set up China’s first private equity fund devoted to investment in financial companies, which aims to manage assets worth $2.9 billion, newspapers said on Wednesday, as part of China’s reforms to transform its financial hub into a global financial centre by 2020.
Set up on Tuesday among only a few government-backed private equity funds in China, Shanghai Financial Development Investment Fund would particularly target investment in financial start-ups not only in Shanghai, but also around China, the Shanghai Securities News said.
The fund, managed by the simultaneously established Jinpu Industrial Investment Fund Management Co, aimed to raise as much as 20 billion yuan ($2.9 billion) eventually and has started to raise the first batch of 8 billion yuan, the newspaper said.
The fund now has a paid-in capital of 200 million yuan, half owned each by Shanghai International Group, an arm of the city government, and investment bank China International Capital Corp (CICC), the China Securities News said.
China’s cabinet, the State Council, announced in March that the government had decided to build Shanghai, China’s financial hub, into a global financial centre to reflect China’s economic strength and the status of its yuan currency CNY=CFXS.
Last month, Shanghai took the lead in China by launching a pilot programme allowing companies to settle imports and exports in yuan, among other reforms. ($1=6.83 Yuan)
(Reporting by Lu Jianxin and Edmund Klamann; editing by Ken Wills)