HONG KONG — An investment firm backed by the Beijing city government is in talks with prospective investors to raise over 10 billion yuan ($1.5 billion) in its first fund aimed mainly at cutting-edge tech investments, said two people with direct knowledge.
Beijing Innovation Industry Investment Co.’s fundraising move underscores the Chinese capital city’s push to catch up with other cities in the country, most notably Shenzhen, in pursuing innovative technology and industrial upgrading projects.
It comes as China aims to speed up development of its technology sector, including segments such as semiconductors and artificial intelligence, amid a fierce trade stand-off with the United States that has demonstrated the country’s reliance on imported technology.
China’s State Council in 2016 approved a 200 billion yuan venture capital fund here, financed by state controlled entities, to invest in new technologies.
It was set up by Beijing’s municipal State-owned Assets Supervision and Administration Commission (SASAC), which oversees the city’s state-owned enterprises, and has been tasked with making investments in new-economy sectors on behalf of the local government.
Beijing Innovation has attracted the local SASAC and several local government-backed companies such as Shenzhen Capital Group, the venture investment vehicle of the Shenzhen government, as investors, according to domestic media reports and public corporate registry filings.
Shenzhen Capital Group has over 333 billion yuan of assets under management, its website shows, and holds a 15% stake in Beijing Innovation, according to public disclosures. — Reuters

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