China’s ICBC launches $11 billion technology innovation fund

The Industrial and Commercial Bank of China (601398.SS), the largest commercial lender globally by assets, declared on Wednesday the initiation of an 80 billion yuan ($11.04 billion) fund for technology and innovation aimed at bolstering the private economy.

The new fund intends to back “hard technology” through equity investment, focusing on domains like semiconductors and advanced manufacturing rather than “soft” technology like internet services, as stated in a release from the state-owned bank.

ICBC will fully execute directives from central authorities by converting advantageous policies into tangible actions that support private businesses, said Liao Lin, the bank’s chairman, during a meeting on Wednesday, as stated in the release.

The fund is likewise categorized as “patient capital” rather than seeking immediate profit, it stated.

The action follows China’s outline of its key policy goals for 2025 during last week’s annual parliamentary session, detailing strategies to boost consumption and attain technological advancements amid ongoing geopolitical strains with the U.S. In conjunction, China’s state planner announced the establishment of a government-supported fund aimed at leveraging 1 trillion yuan from private capital to aid technology startups.