Chinese businesses will invest in hi-tech Israeli start-up companies under a new agreement signed in Beijing.

Two Israeli enterprises signed agreements on equity investments with their Chinese counterparts and a fund on Thursday at a Sino-Israeli salon on innovation and entrepreneurship.

The China-Israel Innovation and Development Fund aims to invest in the early stage of Israeli hi-tech businesses, support them to cooperate with Chinese companies and settle in the Beijing Zhongguancun Software Park, and promote the development of China's hi-tech sector.

The fund was established in 2014 by Beijing Zhongguancun Software Park Development Co Ltd and Israel's Shirat Enterprises Co Ltd.

Matan Vilnai, Ambassador of Israel to China, said the embassy would continue to fully support the cooperation between companies from both countries. He said there was great potential for cooperation on innovation.

The salon, which is hosted by Zhongguancun and Shirat, also houses an exhibition on hi-tech innovation, featuring dozens of pictures depicting the main messages behind technological entrepreneurship that characterizes Israeli entrepreneurs.

Liu Kefeng, president of the Zhongguancun Software Park, said both the Chinese and Israeli companies should give full play to their respective advantages, assist each other, and thus enjoy better cooperative development.