Third phase of China Investment Fund established
China has created a third government investment fund to boost the domestic semiconductor industry. The authorized capital of the new fund is $47.5 billion, as stated in the register of state-owned companies.
Such investments in this strategic sector demonstrate President Xi Jinping's commitment to providing China with advanced domestically produced microchips. This has become especially relevant after the United States introduced a number of export restrictions in recent years due to fears of Beijing using chips for military purposes.
Information about the creation of a new fund caused an increase in quotations of Chinese chip manufacturers. The CES CN Semiconductor Index gained more than 3% and is poised to record its largest daily gain in the past month.
The third phase of the China Integrated Circuit Industry Investment Fund, known as the «Big Fund», was officially launched on May 24th. It will become the largest in terms of capital.
The main shareholders of the new one are the Ministry of Finance of the People's Republic of China with a share of 17% and the state-owned China Development Bank with 10.5% of shares. Other significant investors include the five largest Chinese banks, each contributing about 6% of the capital.