Three state-backed investment groups in southern China have joined forces in the launch of an RMB-denominated mega-fund to invest up to 20 billion yuan ($2.9 billion) in the country’s ultra-high-definition (UHD) video industry.
Guangzhou Development District Investment Group, a Chinese state capital investor with about 45 billion yuan ($6.5 billion) in total assets, co-established and launched the 20-billion-yuan mega-fund at a signing ceremony on Thursday, the online arm of Chinese state news agency Xinhua reported.
The other two founding parties include Guangzhou Industrial Investment Fund Management, a government-backed asset management platform also known as “SFund,” and Greater Bay Area Homeland Development Fund, which is tasked with building southern China’s Guangdong-Hong Kong-Macao Greater Bay Area into an international technology hub.
With an initial 1 billion yuan ($145 million) as its startup capital, the mega-fund is dedicated to investing in China’s UHD video sector by forging partnerships with global industry associations, innovative R&D institutions, UHD video corporates and strategic investment companies. It also plans to work with China Media Group, China’s state radio and TV broadcasting company, according to Xinhua.
“The fund will focus on the development of weak points and missing links in China’s UHD video ecosystem, with a target to consolidate and improve the overall sector,” said the state news agency.
The Chinese government’s efforts to accelerate the growth of its UHD video industry came as the country is moving into an era of digital healthcare, connected intelligent transportation and smart manufacturing powered by technologies such as 5G, artificial intelligence (AI) and virtual reality (VR).
CCID, a research institution affiliated with China Electronics Information Industry Development Academy, projected China’s UHD video market size to hit about 4 trillion yuan ($580.2 billion) this year, from 2.45 trillion yuan ($355.4 billion) in 2021.