(Yicai) April 18 -- Shanghai seeks to create a global leader in financing innovative science and technology startups through the merger of two of the city’s big state-owned venture capital firms, thereby creating a state investment platform with more than CNY100 billion (USD13.8 billion) of assets under management.

The city will combine Shanghai State-Owned Capital Investment and Shanghai S&T Venture Capital, both controlled by the municipal state-owned assets manager, the regulator announced on its website yesterday.

With total assets of CNY83.9 billion (USD11.6 billion) and AUM of CNY120 billion, S&T Venture Capital is a key state-owned investor focusing on early-stage risk investments. It has funded more than 2,000 projects through 162 funds and nurtured nearly 200 listed businesses, including 88 traded on Shanghai’s Nasdaq-style Star Market.

S&T Venture Capital manages the Venture Capital Guiding Fund of Shanghai, the Shanghai Integrated Circuit Industry Investment Fund, Shanghai's major projects for strategic emerging industries, and the city's special fund for financing guarantees.

Founded in 2021, Shanghai State-Owned Capital Investment is dedicated to implementing the strategic shareholding management of state-owned assets, investing in major competitive industry projects, and operating equity investment funds in a market-oriented and professional way. It has a registered capital of CNY10 billion.

Shanghai State-Owned Capital Investment owns 28 percent, 7 percent, 5 percent, and 40 percent of Shanghai International Port Group, Shanghai International Airport, Shanghai Electric Group, and Arcplus Group, respectively. All of these companies are based in the eastern Chinese city.

Editors: Liao Shumin, Futura Costaglione