China's northern Tianjin Municipal has set up an investment fund that allows overseas Chinese investors to pump money into local technology companies.
The first of its kind to do so, the fund already has raised 2 billion yuan (US$327.68 million) that will be plowed back into tech startups in China, according to a report by local news wire Xinhua Agency. Jointly established by the Chinese Overseas Entrepreneur Fund and Haitong Securities, the investment fund aims to support the development of Chinese enterprises by cooperating with larger financial institutions, said Huang Jingyu, managing director of the Chinese Overseas Entrepreneur Fund.
His company inked a cooperative agreement with Haitong and China Investment Securities, and is expected to sign on a Hong Kong-based fund management company in the near future.
"We will seek more opportunities for overseas Chinese businessmen to invest in the domestic market, and provide assistance in mergers and acquisitions," Huang said.
Overseas Chinese investors will be required to inject their funds through a Chinese brokerage.