China prepares next phase of national SME fund to boost tech start-ups and IPOs
A new phase of the state-backed fund is set to target early-stage hard-tech firms that are IPO-ready
China will soon launch the second phase of a National SME Development Fund with a focus on IPO incubation and channelling private capital into backing innovative, early-stage entities and projects with long-term prospects in hard tech.
The fund’s second phase was confirmed as the Ministry of Industry and Information Technology (MIIT), together with nine other ministries and agencies, released China’s 15th five-year plan for promoting the development of small and medium enterprises (SMEs).
The second phase would enhance support for inclusive financing and initial public offering readiness, MIIT officials said at a State Council Information Office press conference in August.
The national fund would provide a “guiding and catalytic role”, the officials said, expressing confidence that it would continue to attract and pool more venture and private capital for investment in tech-focused SMEs.