A total of 22 biological companies, including China Pharmaceutical Group Limited (CSPC) and DSM China (DSMC), established a biotechnology fund. With the initial fund-raising of RMB1B, this fund will be used to finance these companies and support their R&D activities.

As for the investment targets, aminophenol, organic acid, Biodiesel Fuel, industrial enzyme, pharmaceutical raw materials, etc are included.

The fund¡¯s initiator Zhibin Zhang, Director General of the Bureau of Life Sciences & Biotechnology, Chinese Academy of Sciences, said this fund is different largely from other international funds. For international funds, professional fund managers will collect funds from investors and distribute investment proceeds among those investors. By contrast, the member enterprises of this fund will manage their committed capital themselves instead of by a professional fund management firm; the member enterprises should sign contracts with research firms when conducting an investment project.