ICBC Launches $11 Billion Fund to Propel Technology and Innovation
ICBC has launched an 80 billion yuan ($11 billion) fund to enhance the private economy, focusing on hard technology such as semiconductors and advanced manufacturing. Chairman Liao Lin emphasized the importance of patient capital to support private enterprises. This initiative aligns with China’s 2025 policy goals amid geopolitical tensions and complements a planned 1 trillion yuan government-backed fund for technology startups.
The Industrial and Commercial Bank of China (ICBC) has announced the establishment of an 80 billion yuan (approximately $11.04 billion) technology and innovation fund on Wednesday. This initiative aims to bolster the private economy by focusing on “hard technology” investments, specifically targeting sectors such as semiconductors and advanced manufacturing, as opposed to “soft” technology like internet services.
Chairman Liao Lin stated that ICBC is committed to translating beneficial policies into actionable support for private enterprises, following directives from central leadership. The fund is characterized as “patient capital,” emphasizing a long-term investment approach rather than seeking immediate profits.
This announcement follows China’s recent policy outline for 2025, which aims to enhance consumption and drive technological innovation amid ongoing geopolitical challenges with the U.S. Additionally, last week, the state planner indicated plans for a government-backed fund intended to leverage 1 trillion yuan from social capital to aid technology startups.
In conclusion, the launch of the ICBC’s technology and innovation fund represents a significant commitment to supporting China’s private sector and advancing technological development in key industries. The focus on patient capital signifies a strategic shift towards long-term investment, aligning with national goals to enhance technological capabilities and address current geopolitical tensions. The establishment of supplementary government funds further illustrates the government’s dedication to fostering innovation and economic growth.
Original Source: www.tradingview.com
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