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Shanghai planning US$13.8 billion fund of funds in pursuit of ‘several world-class industry clusters’, with eye on AI, biotech and semiconductors
- ‘Shanghai envisions building several world-class industry clusters,’ Mayor Gong Zheng tells investment promotion conference
- The fund will support promising start-ups in the fields of artificial intelligence, biotechnology and semiconductors
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Daniel Renin Shanghai
Shanghai, mainland China’s commercial and financial hub, plans to set up a 100 billion yuan (US$13.8 billion) fund of funds focusing on key technology sectors to fire up the local economy, which is lagging behind the rest of the country.
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The fund will underpin promising start-ups in the fields of artificial intelligence, biotechnology and semiconductors, and is expected to attract more technology firms to Shanghai, the municipal government said in a statement on Friday.
The local state-owned assets watchdog will be responsible for the fund’s establishment and operations. It will be the city’s largest government-backed guidance fund.
Funds of funds are multi-manager investments that allow broad diversification and appropriate asset allocation with investment expertise in a variety of fund categories. They were created in the United States in the 1960s, with pension funds being a major source of capital.
Shanghai mayor Gong Zheng told an investment promotion conference on Friday that the city’s accelerated efforts to bolster technological innovation in these strategically important industries will consolidate its role as an investment magnet.
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“When you invest in Shanghai, you are planting a seed for a prosperous future,” he said. “Shanghai envisions building several world-class industry clusters.”
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