Beijing E-Town establishes multi-billion-dollar GGF
Beijing E-Town recently announced that a Government Guiding Fund (GGF) will be established.
With an initial fund size of 10 billion yuan ($1.45 billion), the GGF will guide social capital to invest in areas in line with the industrial layout and strategic positioning of Beijing E-Town.
According to sources, the establishment of the GGF implies the cultivation of entrepreneurship and innovation with the mind of venture capitalists, which is conducive to better serving the development strategies of Beijing E-Town, improving the competitiveness of core industries in the area, and promoting the upgrading of its industrial structure.
The GGF will mainly invest in key industries and areas determined by the Working Committee and Administrative Committee of Beijing E-Town, such as high-end manufacturing, biomedicine, the digital economy, urban renewal, and will focus on supporting the growth of innovative companies, mergers and the acquisition of advantageous companies, and the attraction of key projects.
Hu Bo, director of the EMBA Center of the School of Finance of Renmin University, believes that the establishment of the GGF in Beijing E-Town comes at the right time, and will not only promote the development of the regional private equity market, but also alleviate the financing difficulties of innovative and start-up small and micro enterprises. It will also guide social resources to support key areas and weak links.