China is looking to set up a $6.5 Billion venture capital fund. The Financial Times mentioned that, the launch of the government-sponsored VC fund will be apart of China’s efforts at financial reform.

China will set up a government venture capital fund worth 40 billion yuan ($6.5 billion) to support start-ups in emerging industries, in its latest move to support the private sector and foster innovation.

“The establishment of the state venture capital investment guidance fund, with the focus to support fledging start-ups in emerging industries, is a significant step for the combination of technology and the market, innovations and manufacturing,” China’s State Council, the cabinet, said in a statement.

“It will also help breed and foster sunrise industries for the future and promote (China’s) economy to evolve towards the medium and high ends,” it said in the statement published in the government’s website, www.gov.cn, referring to sectors which the government is promoting such as technology and green energy.

Full press release on Reuters