China's government has led an effort to establish a RMB100 billion (US$14.55 billion) fund to invest and support fast-growing Internet companies in the country, as Chinese regulators increasingly tightened controls over the sector.
The China Internet Investment Fund, launched in Beijing on Sunday, will be overseen by the Cyberspace Administration of China (CAC) and the Ministry of Finance. It will be funded by capital from the fiscal budget of the central government, and six strategic investors including China Mobile, China Telecom, China Unicom, CITIC Guoan Group, the Industrial & Commercial Bank of China, and China Post Insurance, according to state news agency Xinhua.
The vehicle has secured RMB30 billion in its first phase of fundraising from these investors, with the remaining RMB150 billion in the form of credit provided by the Agricultural Bank of China, China Development Bank and the Industrial & Commercial Bank of China.
The move comes at a time when regulators in China are tightening control over how information is disseminated over the Internet.
The Ministry of Industry and Information Technology just said that no individuals or companies are allowed to install virtual private networks (VPNs) that could be used bypass China's "the Great Firewall" without proper regulatory clearance.
Earlier, the ministry required all applicants for Internet services in China to provide real names and identifications in order to get service, following the same requirements were put in place for mobile phone users.
No information were disclosed regarding the entity that will be managing the investment activities of the fund, as most state-backed funds provide little public disclosure in the country. But according to official reports by Xinhua, the fund will be guided by three principles: follow government investment strategy, adhere to market operation and professional management.
This means the fund will be potentially looking closely at agricultural tech, smart energy, financial technology, logistics, e-commerce, telecommunication, cloud computing, big data and artificial intelligence, according to a blueprint for emerging new industries as part of China's 13th Five-Year Plan.