Hubei to kickstart emerging sectors with fund

China's Hubei province will set up a fund totaling 30 billion yuan ($4.4 billion) to vitalize emerging sectors, as rising capital is gathered to the province to accelerate local economic recovery and further high-quality development after the COVID-19 pandemic.

The fund, with the first batch of funding hitting 10 billion yuan, will be managed by Chinese investment firm Hongtai Aplus. The fund will mainly be used to help the province in upgrading traditional industries and nurturing emerging sectors.

"With opportunities brought by the registration-based IPO system, the setup of the fund aims to nurture a number of high-quality listed companies for Hubei province and Wuhan city and play a role in its high-quality development and industrial transformation," said Shen Yanjie, managing partner of Hongtai Aplus, at a news conference on Wednesday.

According to Hongtai Aplus, segments such as fundamental equipment manufacturing, next-generation information technology, new materials and new energy and power equipment will be prioritized.

The move came before the opening of the 2020 Wuhan Global Capital Conference for High-Quality Development. The forum will kick off on Sept 28 in Wuhan and bring over 100 renowned experts, scholars and leading venture capitalists from both home and abroad.

"By gathering capital elements and financial resources, the conference is expected to attract domestic and foreign investment firms in driving Wuhan's economic recovery and also offering a lasting impetus for local innovation and high-quality development," said Fang Jie, deputy secretary-general of the Wuhan government.

"The conference is also in line with China's call for a 'dual-cycle' development pattern, which facilitates a smooth functioning of the economic cycles of both the domestic and global markets, with the performance of the domestic economy being the mainstay," Fang said.

Fang added Hubei's overall economy performed well in July, with many indicators achieving positive growth. In particular, industrial output increased by 1 percent while fixed asset investment increased by 5.7 percent.