A new fund for financing innovative tech companies was created in China with the support of the Chinese government.
The fund is called the Xiong’An Global Blockchain Innovation Fund and its creation was announced during the inauguration of the Blockchain Industrial Park in Hangzhou. This city is known for supporting innovative companies, among which we can mention Alibaba. The new park will serve as an incubator for projects related to the blockchain technology.
According to Sohu, a local news agency, the fund will receive around 400 million dollars from the Yuhang District Government. This money will be invested in the blockchain sector and it represents 30% of the fund’s assets. The initiative to create such fund came from Tunlan Investment, a venture capital company and will be managed by Science and Technology City Administrative Committee of the city of Hangzhou, Hangzhou Haoyu Investment Management Co, Youyi Investment and INBlockchain. INBlockchain previously participated in projects such as Qtum, Zcash, SIA and EOS.
One of the member of the new fund will be Xu Xiaoping, the founder of Zhenfund, a venture capital company that participated in the past in blockchain projects such as Lino. Another member of the fund will be Li Xiaolai, an independent investor in blockchain and Bitcoin. He Xiaolai will also be the general manager of the Xiong’An Global Blockchain Innovation Fund.
According to the information provided, ten projects related to the blockchain technology will participate in the industrial park incubator project we mentioned earlier. These projects were not named, but we know they will deal with cloud storage, cryptocurrency trading and investment management.
Despite the fact that the cryptocurrencies are strictly regulated by the Chinese government, the authorities are highly interested in developing the blockchain technology and applying it in various sectors. China decided to ban the initial coin offerings (ICOs) last autumn. In January this year, the authorities also banned the “exchange-like services” and foreign exchanges in February.
China is one of the main exporters in the world and different manufacturing industries and raw material industries could benefit from the blockchain technology. This is one of the main reasons why the Chinese authorities decided to support the new fund. The blockchain technology was used in China to export the first cargo of gasoline.
If we take into account the ongoing commercial war between the United States of America and China, it seems Bitcoin could benefit from it and server as a store of value while the two countries are fighting by imposing limitations and increasing taxes for their commercial exchange.