On Wednesday, the largest commercial lender in the world by assets, Industrial and Commercial Bank of China, announced the opening of a technology and innovation fund worth 80 billion yuan ($11.04 billion) to boost the private sector.
According to a statement issued by the state-owned bank, the new fund seeks to foster “hard technology” through equity investment, which refers to sectors like semiconductors and sophisticated manufacturing, rather than “soft” technology like internet services.
The lender’s chairman, Liao Lin, stated during a meeting on Wednesday that ICBC will fully carry out orders from central leadership by turning advantageous policies into tangible measures that assist private businesses, the statement added.
Additionally, the fund is positioned as “patient capital” rather than chasing a rapid profit, it stated.
In an annual parliamentary meeting last week, China outlined its key policy targets for 2025, including how it intends to boost consumption and make technological advancements in the face of geopolitical tensions between the U.S. and China.
China’s state planner announced last week that the country would establish a government-backed fund to help technology firms by raising 1 trillion yuan from social capital.
