Ordos sets up special fund to support private sector

Zhang Jianjun, chairman of Ordos Investment Company for Transformation and Development, says he is excited about the initiative. [Photo/WeChat account of Ordos News]

The government of Ordos in Inner Mongolia autonomous region will set up a special fund of 1 billion yuan ($149 million) to support the transformation and upgrading of private enterprises, according to the government report released at this year’s Municipal People’s Congress held from Feb 27 to March 2. 

The local authorities in Ordos held rounds of discussions on the specifics of the establishment and management of the fund before formulating the decision. 

The aim of the move is to attract professional fund management institutions to invest in Ordos companies that have potential for growth, said Zhang Jianjun, chairman of Ordos Investment Company for Transformation and Development. 

In this way, the companies can receive sustainable financing to meet their demands for capital, Zhang said in an interview. 

Fund management institutions -- rather than government departments -- will run the fund, giving full play to the market in allocating the resources. 

Those private companies interested in applying to the fund need to file an application to the specified fund management institutions and the banks they team up with. 

The funding innovation was well received among entrepreneurs in Ordos, and Li Bo, general manager of the Ordos Zudinghui Soccer Club, was one of them.

He expressed his excitement about the initiative, saying that going forwards private entrepreneurs would be more confident with the help of more favorable investment policies.