Beijing Municipal Commission of Development and Reform and Beijing Finance Bureau jointly launched Beijing Small and Medium-sized Enterprises Venture Capital Guidance Fund yesterday. The Guidance fund will help SMEs deal with the difficult financing issue.

It is reported that the Guidance Fund¡¯s initial scale is RMB300 million, and the first batch of fund management institutions will be released at earliest in September. About five institutions, whether foreign capital-funded or domestic capital-funded, will be initially selected as cooperative partners.

The Guidance Fund will guide VC funds to jointly establish a venture capital investment enterprise in the form of share participation, focusing on investing in technological start-ups and innovative SMEs that are in line with the development orientation of Beijing municipal city and related industrial policies. The capital which was injected by the Guidance Fund into the venture capital investment enterprise shall not exceed 30% of its paid-up capital and shall not be the first largest shareholder. The participating VC funds shall invest at least twice that of the amount invested by the Guidance Fund into SME start-ups and shall also invest at least twice that of amount invested by the Guidance Fund into Beijing area.