Shenzhen, China’s Silicon Valley of hardware, has announced the official launch of its first venture capital fund focusing on blockchain. The initial scale of the local backed fund is RMB 500 million, Bianews reports. The fund will be government-led signaling that the blockchain industry in China is entering what some local commentators have dubbed a “government-led mode.”

The announcement of Shenzhen’s new blockchain fund was made April 22 at the Chinese Universal Exposition & World’s Fair in Blockchain in Shenzhen, sponsored by the China Electronic Commerce Association (CECA) and the Ministry of Industry and Information Technology (MIIT). The announcement comes about 2 weeks after the Hangzhou government invested in a $1.6 billion blockchain fund.

A large part of the fund will be financed by Shenzhen Angel Capital Guiding Fund which will contribute 40%. The fund will be managed by two investment funds under the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) Donghai Capital and Hengxing Capital. The fund aims to invest in more than 100 blockchain seed projects.

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