Report: Beijing-focused VC fund raises RMB 500m

The Beijing Zhongke Fangshan Venture Capital Fund will reportedly invest in hi-tech companies in the capital’s suburban areas.

The Beijing Zhongke Fangshan Venture Capital Fund has reportedly raised RMB 500 million ($73 million).

The fund, which is managed by local venture capital firm China Science & Merchants Capital Management, raised RMB 500 million from enterprises in the Fangshan district, according to Chinese newspaper China Daily. Fangshan is situated in the southwest of Beijing.

The fund will invest primarily in hi-tech companies and companies with huge growth potential, such as agricultural firms, Shan Xiangshuang, president of China Science & Merchants Capital Management, told the newspaper.

The main task for the government this year would be to promote the fund in suburban areas, said Ji Lin, vice mayor of the Beijing municipal government. 

Earlier this month, five Chinese institutions launched the Nanhua Venture Capital Fund, which is targeting RMB 1 billion. At least 30 percent of the fund will be invested in Hainan province.

In December 2008, Hangzhou, the capital city of Zhejiang province, disclosed plans to launch a private equity incentive package to attract private equity investment. 

China Science & Merchants Capital Management could not be reached for comment.