China Creates New Investment Fund With 13.6 Billion Euros For Online Business
With the aim of recovering the pulse in the world's innovative ecosystem, the Chinese government sprung back into action and in the process has boosted an investment fund with more than 100 billion yuan in capital.
In recent months there has been a lot of talk regarding Japanese fund Softbank, an initiative which has been further bolstered by Trump's support. Softbank prides itself as a major upcoming investment player in Asia. This is manifest by the fact that it has been a proud buyer of ARM chips and is one of the emblems that has hugely involved itself in vastly innovating technology in today's day and age. This is a role that does not seem to fit in with China. China intends to counter this disparity.
The Chinese government, therefore, has announced the creation of a new investment fund with 100.000 billion yuan (equivalent to 15,000 million, 13,590 million euros at current exchange rates ) that will be used to support new businesses in the sector Internet. According to the official news agency, the aim of the Chinese authorities is more ambitious: to turn the country into the most important player of online business worldwide.
Of this capital, it seems that about 30 billion yuan have already been raised from China's leading banks and telecommunications firms. In the list of benefactors include ICBC, China Mobile and China Unicom, as recorded by the agency Reuters. And all that money must be added 150,000 million yuan credit line that will be available to to as companies in which the fund invests.
This fund is part of the broader strategy that the Communist authorities have released earlier this month, which they intend to spend more than 1.2 trillion yuan in the next two years to develop all businesses and activity areas In the ICT environment.