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Beijing E-Town establishes industrial upgrade fund

Updated: 2023-04-07

Beijing E-Town established the Industrial Upgrade Equity Investment Fund recently, with a first-phase scale of 2.001 billion yuan ($291.02 billion).

Prior to this, Beijing E-Town has set up a guidance fund to get social capital to invest in areas that align with the industrial layout and strategic positioning of Beijing E-Town. It was also set up to foster entrepreneurship and innovation with venture capital thinking, promoting industrial development and maturity. 

The fund is a special sub-fund of the guidance fund, directly investing in major projects related to Beijing E-Town's economic development and industrial promotion. The first phase of the guidance fund has a scale of 10 billion yuan, and 3.5 billion yuan has been disbursed, according to sources.

The fund is the equity investment platform of the guidance fund, which adopts a limited partnership form. And Beijing E-Town guidance fund serves as a limited partner to subscribe capital. 

The first phase of the Industrial Upgrade Fund has a scale of 2.001 billion yuan, with annual actual contributions in place. 

For investments exceeding the actual capital contributed by the fund, additional actual contributions can be made. The fund does not set threshold returns, and all investment returns are distributed to the contributors. The fund manager does not charge excess returns.

What is the investment direction of the fund? The fund focuses on the fields of new generation information technology, robotics and intelligent manufacturing, biotechnology and big health, new energy intelligent vehicles, and digital economy.

Which projects or enterprises meet the investment requirements of the fund? Enterprises that are invested should be registered and pay taxes in Beijing E-Town. Within three years of receiving investment from the fund, their newly added investment of the enterprise in Beijing E-Town should not be less than twice the amount of the fund's equity investment in the enterprise. 

Besides, the enterprise should commit to having the listing entity be located in Beijing E-Town. The fund's shareholding percentage for a single project or enterprise should not exceed 30 percent, and it cannot become the largest shareholder of the enterprise.