China invests 100 billion yuan into state fund for Internet
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China invests 100 billion yuan into state fund for Internet
China has erected a CNY 100 billion (S$20.74 billion) state fund for investments into their own Internet prowess. According to the South China Morning Post, the fund will be used for supporting Internet companies, as well as pushing their own technological innovations into an “Internet Plus” era.
The China Internet Investment Fund was inaugurated over the weekend with the involvement of state-owned banks and companies, and it’s helmed by Cyberspace Administration of China (CAC) and their Ministry of Finance.
The first round of funding saw CNY 30 billion, and more will be flowing in – 150 billion yuan from Agricultural Bank of China, China Development Bank, and the Industrial & Commercial Bank of China. The latter will also inject CNY 10 billion into the state fund, on top its existing loan.
According to Reuters, China is looking to invest up to CNY 1.2 trillion by 2018 into Internet-related infrastructure. China’s government is also looking to raise e-commerce trading volume to 40 trillion yuan by 2020. There’s no indication if the investment funds will be going to any of the non-state firms, such as Alibaba Group Holdings, Baidu Inc., Tencent Holdings, and more.
