Although China has long back ended its cryptocurrency pursuits, its drive for using the underpinned blockchain technology continues to grow stronger. China wants to be a leader in the blockchain space by taking an early lead and is seen funding several startups across the country 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.
The fund will be managed by two investment funds, Star Capital and Donghai and will be controlled by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC).Liu Zhongpu, commissioner of the Shenzhen’s advisory commission, will be an advisor to this 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 a budget of 5 billion yuan ($800 million) to be invested in different startups growing in the city of which 4 percent is allocated to the 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.
