The People's Government of Beijing Municipality has launched a multi-billion dollar fund-raising campaign to raise cash to support the development of cutting-edge technologies to be established within the city.
Beijing Innovation Industry Investment Company (BIIIC), an investment firm backed by the Beijing city government, is negotiating with prospective investors to raise over $1.5 billion (RMB10 billion) for its first fund aimed mainly at soliciting investments to advance key technologies such as artificial intelligence.
For years, Beijing has lacked a consolidated investment arm under the local government that can handle tech deals. The establishment of BIIIC solves this drawback.
This first-of-its-kind tech fundraising move undertaken by Beijing underscores the Chinese capital city's push to catch-up to other Chinese cities such as Shenzhen and Shanghai where high technology has taken root. Beijing's reputation is that of a dour city dominated by politics.
Beijing, however, does have a tech sector, albeit a limited one. It is the home of ByteDance Technology, one of the world's most valuable startups and e-commerce firm JD.com.
BIIIC will look for direct-equity investment opportunities in sectors such as information technology; integrated circuits; electric vehicles and new materials, according to Chinese state-run media.
BIIC was established by Beijing's State-owned Assets Supervision and Administration Commission (SASAC). This agency oversees the city's state-owned enterprises and is tasked with making investments in new-economy sectors on behalf of local government.
Analysts said BIIIC has drawn the attention of the local SASAC and several local government-backed firms such as Shenzhen Capital Group, the venture investment vehicle of the Shenzhen government, said Chinese media reports.
They said the founding of BIIIC comes as China aims to speed up development of its technology sector in an effort to advance its self-sufficiency. But even before this, or in 2016, China's State Council approved a $29.9 billion (RMB200 billion) venture capital fund financed by state-controlled entities to invest in new technologies.
