On June 21, Jiangsu launched the FOF for strategic emerging industries with a total scale of RMB 50 billion. This provincial FOF is positioned as patient capital, fully leveraging its guiding function to steadfastly support technological innovation, traditional industry upgrading, and the cultivation of emerging industries, thereby promoting high-quality economic development.

In March this year, during the deliberation of the Jiangsu delegation at the second session of the 14th National People’s Congress, President Xi Jinping emphasized the need to “accelerate the creation of strategic emerging industrial clusters with global competitiveness to make Jiangsu an important base for developing new quality productive forces.” “Strengthening financial innovation and expanding patient capital are crucial engines for accelerating the cultivation of new quality productive forces,” said Shen Jianrong, Director General of the Jiangsu Provincial Development and Reform Commission. Establishing the FOF for strategic emerging industries is an important endeavor made by Jiangsu to accelerate the establishment of a market-oriented, professional, and law-based operation model for government investment funds. The provincial FOF adheres to the principles of “guided by the government, operated by market mechanism to balance efficiency and effectiveness and strictly prevent risks.” It aims to deepen cooperation with industrial capital, social capital, and financial institutions, increase equity financing supply for the real economy, and actively build an efficient platform for industry-finance interaction, thereby broadening direct financing channels for Jiangsu’s strategic emerging and future industries. Meanwhile, by further clarifying the positioning of government-managed funds and market-oriented funds, it can fully leverage the guiding and leveraging role of financial funds, accelerate the establishment of a positive incentive mechanism for win-win cooperation, form a synergistic effect of complementary advantages, and attract patient capital, long-term funds, and leading enterprises to gather in Jiangsu.

The provincial FOF will mainly invest in Jiangsu’s “51010” strategic emerging industrial clusters, the “1650” industrial systems, the “10+X” future industrial systems, the strategic emerging industries and future industrial fields specified in the Action Plan for Building an Industrial Scientific and Technological Innovation Center with Global Influence as well as other key areas in line with national and provincial development plans for strategic emerging industries.

The provincial FOF adopts a “competitive application and phased establishment” approach. Based on the development positioning, industrial foundation, resource endowment, and competitive advantages of each city, it will collaborate on multiple levels in the field of industrial funds, providing strong guidance and targeted support to promote in-depth industrial transformation and green low-carbon transition region-wide. The first batch of 14 special funds for strategic emerging industries, with a total scale of RMB 50.6 billion, will be officially signed and established, with the provincial FOF contributing RMB 12.65 billion. This marks the implementation of the overall framework of the provincial FOF and the formation of a virtuous cycle of “technology-industry-finance.” The vision of capital aggregation, institutional cooperation, enterprise benefits, and industrial development is materializing.

Wang Huiqing, Chairman of GOVTOR, stated that based on the maximum contribution ratio of 30% of the industrial special fund in the industrial sub-fund, it is expected that the first batch of industrial special funds can attract social capital and form a total scale of RMB 110.6 billion in industrial sub-funds. Ultimately, the first batch of industrial special funds and industrial sub-funds is expected to reach a total scale of RMB 161.2 billion.