By Gabby Chen

(JW Insights) Feb 19 -- Guangzhou government and Guangzhou Industrial Investment and Capital (广州产投) joined hands in setting up two funds - Guangzhou Industrial Investment fund of funds (FoF) and Guangzhou Innovation Investment FoF - in Nansha district of Guangzhou on February 18, reported Securities Times and several other Chinese language presses.

The two funds totaled RMB200 billion ($29.17 billion) with the aim of supporting industrial sectors such as semiconductors, IC, and new energy.

Gao Dongwang, chairman of Guangzhou Industrial Investment and Capital, said, "We will focus on high-quality projects and emphasize the return on investment (ROI) rather than merely being a general partner (GP). And we intend to promote the landing and development of projects in Guangzhou, building a trillion-level cluster of industrial development funds."

The Guangzhou Industrial Investment FoF, with RMB150 billion ($21.88 billion), will be in the form of a company, operating in the mode of "sub-fund & direct investment". Meanwhile, the Guangzhou Innovation Investment FoF, with RMB50 billion ($7.29 billion ), will be in the form of a limited partnership.

During the fund establishment conference, Guangzhou Industrial Investment and Capital signed cooperation agreements with 11 companies such as CVTE, Farasis Energy, Unicom Medical, and CanSemi, according to the reports.