Shanghai launches major funds to drive industrial transformation

Two funds to bolster industrial transformation, stimulate state-owned enterprise reform, and foster the development of high-tech industries were established at the Shanghai Global Investment Promotion Conference on Tuesday.

The Industrial Transformation and Upgrade Fund (Phase II) is valued at 50 billion yuan (US$6.9 billion), with an initial investment of 10 billion yuan. It is designed to support key industries, including new-generation electronics, high-end equipment, automobiles, new materials, software and information services, and industrial services. It will provide crucial assistance to advanced manufacturing enterprises during their growth and maturity phases, driving the development of new quality productive forces in Shanghai.

The State-owned Capital M&A Fund Matrix of Shanghai, also worth more than 50 billion yuan, will focus on mergers and acquisitions within state-owned enterprises, targeting strategic sectors such as integrated circuits, biomedicine, high-end equipment, civil aviation, commercial aerospace, and the cultural tourism and consumption industries. It aims to inject liquidity into the capital market and further facilitate the city's industrial upgrading efforts.