China has launched a 200-billion-yuan (US$30 billion) government-backed venture capital fund as part of Beijing’s move to shake up its bloated state sector and foster innovation in the overall economy, the South China Morning Post reports. The fund’s chief promoter and manager is China Reform Holdings Corp, one of three asset management arms that answer directly to the State-owned Assets Supervision and Administration Commission, which manages state-owned enterprises. The establishment of the fund, approved by the State Council, marked the Chinese government’s latest attempt to use more market-friendly ways, instead of direct administrative orders, to consolidate state assets. The fund could make it easier for the government to dispose of loss-making SOEs and steer funds to more profitable or innovative ones.

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