Although China has long back ended its cryptocurrency pursuits, its drive for using the underpinned blockchain technology continues to grow stronger. China aims to lead the blockchain space by taking an early initiative and actively funding several startups across the country that are working in this field.
Earlier this month reports of the Chinese city of Hangzhou investing $1 Billion in blockchain fund, emerged. On Sunday, April 22nd another Chinese city of Shenzhen announced a similar Blockchain investment fund during an event hosted by the China Electronic Commerce Association. The fund announced by Shenzhen plans to invest $79 million (500 million yuan) during its first phase.
Two investment funds, Star Capital and Donghai, will manage the fund, while the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) will oversee its operations. Liu Zhongpu, the commissioner of Shenzhen’s advisory commission, will serve as an advisor to the project.
Last month in March, the Shenzhen Municipal government launched an angel fund which will be contributing 40% i.e. $32 million of funds through a public-private partnership. The remaining funding will be done by other private sector companies.
The angel fund has allocated 5 billion yuan ($800 million) to invest in various startups emerging in the city, dedicating 4 percent of this amount specifically to local blockchain projects.
shenzhen has been eyeing the development of blockchain projects for quite a long time. Last year in October 2017, the city government had issued different measures for supporting the development of its financial industry including financial data, digital currency and blockchain.