Guangzhou Commits $29 Billion to Local Tech Funds

By Zhai Shaohui, Wang Jing, and Ward Zhou

The southern city of Guangzhou has set up two fund-of-funds to inject capital into an array of high-tech sectors, which are struggling from an overall lack of investment. Photo: VCG

Southern metropolis Guangzhou is extending a hand to its local tech industry, allocating a combined 200 billion yuan ($29.2 billion) to two new funds to invest across a broad swathe of sectors and from nascent to large-scale projects.

The vehicles are structured as fund-of-funds (FOFs), a type of entity that invests in multiple funds with different strategies. The Guangdong province-registered FOFs — set up by state-owned Guangzhou Industrial Investment and Capital Operation Holding Group Ltd. — have different focuses and models, according to an announcement posted on its website on Sunday.