Fund to promote Pudong innovation
A new fund to promote innovation in the Pudong New Area was launched on Thursday.
The Pudong Science and Technology Innovation Fund is a fund of funds (FoF) that invests in other special funds, formed by Pudong’s state assets watchdog, state-owned companies and financial institutes.
The fund was launched with an initial investment of 5.5 billion yuan (US$773 million), operated and supervised by the Pudong Investment Holdings Group. The money will be invested in several special funds which focus on Pudong’s core industries including integrated circuits, smart manufacturing, and aviation and aerospace.
Industrial parks in Pudong will exploit their geographic locations and unleash industrial advantages to run different special funds. Zhangjiang Group, featuring international medicine park and new drug production base, oversees the biomedicine fund. Jinqiao Export Processing Zone, home to a cluster of advanced manufacturers, oversees the smart manufacturing fund.
It connects industrial players to financial supporters, and integrates different resources to help local companies list on the sci-tech board on the Shanghai Stock Exchange. It is also expected to create a pool of industry funds worth 20 billion yuan, which can drive the next-round of high-quality development in Pudong, according to Wang Hua, deputy director of Pudong.
"In the next seven years, Pudong’s GDP is planned to double to 2 trillion yuan. And it needs the help from the finance sector," he said.
“It combines innovation with finance, which helps accelerate the city’s development to become a financial and innovation center,” said Bai Tinghui, director of the Shanghai State-Owned Assets Supervision and Administration Commission.
He added: “It also shows the trend from ‘hard sector’ such as regional development and infrastructure construction to the ‘soft sector’ such as fund investment and industry incubation.”