China Launches 51 Billion Yuan Fund for Central SOEs to Advance Strategic Emerging Industries
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China has officially launched a fund aimed at supporting centrally administered state-owned enterprises (SOEs) in developing strategic emerging industries, with an initial phase capital of 51 billion yuan (approximately USD 7.2 billion). The fund was established by the State-owned Assets Supervision and Administration Commission (SASAC) and is managed by China Reform Holdings Corporation Ltd.
Over ten central SOEs, including China Mobile, Sinopec, and the China National Offshore Oil Corporation, have contributed to the fund. According to SASAC, the fund's investment focus spans new-generation information technology, artificial intelligence, new energy, new materials, high-end equipment, biomedicine, and quantum technology. The initiative is intended to support SOEs in addressing industrial gaps and investing in frontier innovation.
At the fund's launch ceremony, SASAC Deputy Director Li Zhen highlighted that the fund will adhere to a “new positioning, new approach, new team, and new mechanism,” aiming to align capital deployment with industrial development needs. Li emphasized that the fund is designed to strengthen links between capital, industrial, and innovation chains, facilitating more efficient allocation of resources in strategic sectors.
China Reform Holdings has acted as the fund's operational manager, building on its previous experience managing multiple state-backed funds, including risk investment and industry development funds. As of late October 2025, the firm had reportedly managed more than 320 projects across 12 funds with cumulative investments exceeding 120 billion yuan, according to media reports.
Investment Period and Exit Mechanism
According to Global Times, the fund reportedly has an investment period of five years and a management and exit period of eight years, with the possibility of extending the investment phase by up to two years, potentially making the total duration up to 15 years.
The launch of the fund reflects China's ongoing efforts to channel state-backed capital into strategic industries, creating a structured investment vehicle for central SOEs to pursue innovation-driven growth while addressing sectoral weaknesses.
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