China Reform Holdings Corp Ltd, a central State-owned enterprise specializing in promoting SOE reform, will establish a fund to support the development of emerging industries, with a target size of over 100 billion yuan ($13.7 billion).
The initiative has garnered support from more than 20 central SOEs, local governments and various social capital entities who showed investment intent. The fund is set to be fully established and operational within this year, said Mo Dewang, general manager of China Reform.
The move aligns with China's focus on nurturing cutting-edge industries for new growth engines and is part of its broader SOE reform efforts, experts said.
Emerging industries, also known as strategic emerging industries, refer to sectors that are in the early stages of development and show significant potential for growth and innovation. These industries often leverage new technologies and business models, such as artificial intelligence, biotechnology and new materials.
The SOE regulator, the State-owned Assets Supervision and Administration Commission of the State Council, said at a recent forum that it has introduced action plans and implementation schemes for nine strategic emerging industries and six future industries. Additionally, it is in the process of drafting tailored guidance policies for each strategic emerging industry and setting up specialized funds.
Wang Hongzhi, vice-chairman of SASAC, said, "SOEs are willing to work with enterprises of all ownership types to seize the opportunity from accelerated global industrial chain restructuring, expedite the construction of a modern industrial system, vigorously develop strategic emerging industries, actively nurture future industries, promote the deep integration of the digital economy with the real economy, accelerate the formation of new productive forces, and jointly enhance the resilience and competitiveness of China's supply chains."
According to a recent report by SASAC's research center, central SOEs have achieved an average annual investment growth rate of over 20 percent in strategic emerging industries over the past three years.
In the first half, central SOEs' investments in strategic emerging industries surged by more than 40 percent year-on-year, accounting for over a quarter of their total investments.
At present, SASAC is rolling out initiatives to accelerate the development of emerging industries, with a focus on 15 key sectors, including next-generation mobile communications, artificial intelligence, biotechnology and new materials. The goal is to increase the proportion of strategic emerging industries among all business sectors of central SOEs by over 2 percentage points by 2023.