China's top economic planner has issued guidelines to channel central government money into new venture capital funds to support the high-technology sector.
The National Development and Reform Commission, the country's powerful planning agency, said the central government would take a stake of no more than 20 per cent in each fund and would not exercise control.
At least 60 per cent of the money for each fund would come from investment institutions, large firms, overseas investors and other non-government sources, with local governments providing the rest, according to the NDRC's guidelines.
The venture capital funds will be required to invest in early-stage companies and those with the potential to grow fast, the NDRC said on its website, www.ndrc.gov.cn.
"The purpose is to promote the country's structural economic adjustment ... and meet the broader goal of encouraging the development of high-tech industries," the statement said.
It did not say how big the funds might be or how much Beijing would invest.
Neither Beijing nor local governments would interfere in the management of the funds in order to allow them to develop along market lines, the NDRC said.
The NDRC has already announced the launch of venture capital funds totalling 9 billion yuan ($1.32 billion) jointly with government funds and private investors to support technology industries and energy-related projects.