Fengtai rolls out 10-bln-yuan industrial investment fund matrix

Beijing's Fengtai State-Owned Assets Operation & Management Co. Ltd. has completed the registration of a government-backed industrial investment fund matrix with an initial scale of no less than 10 billion yuan ($1.4 billion), which will be officially launched next year to provide targeted capital support to enterprises at different stages of development.

The industrial investment fund matrix is Fengtai district's first systematically structured and market-oriented government industrial fund independently managed by a district-level state-owned enterprise. It marks a key step forward in the district's efforts to innovate the use of fiscal funds, channel financial resources more precisely into the real economy, and accelerate the cultivation of new quality productive forces at the regional level.

The fund adopts a fund-of-funds structure. The government-backed parent fund, with a total size of 50 billion yuan and capital contributed by the Fengtai district government, will not be invested directly in individual companies. Instead, it serves as an anchor and stabilizing investor, providing stable capital support and ensuring sufficient liquidity and greater predictability in investment direction across the fund system.

The sub-funds include industrial incubation sub-funds, a cluster of industrial cooperation sub-funds, and industrial guidance sub-funds. Among them, the industrial incubation sub-funds, with a total size of 10 billion yuan, will be primarily designed to support high-quality companies already based in Fengtai district, particularly those with strong growth potential and a track record of stable contributions.

The industrial cooperation sub-fund cluster will have a total size of no less than 10 billion yuan. Backed in part by the government-backed parent fund, it aims to attract high-quality industrial and financial capital from across China to jointly establish sub-funds in Fengtai district.