China Blockchain Park Opens with USD 1.6 Billion Innovation Fund
Xiongan Blockchain Fund is partly owned by the Chinese state
China unveiled on Monday a CNY 10 billion (USD 1.6 billion) state-backed fund designed to invest in promising local blockchain startups. The Xiongan Global Blockchain Innovation Fund, 30%-owned by the local government, was presented during the inauguration of Hangzhou Blockchain Industrial Park in the Sci-Tech City, one of the leading global innovation hubs.
China recently banned cryptocurrency trading and initial coin offerings (ICOs), but it is now indicating its support for the blockchain technology behind Bitcoin and other digital currencies.
The new Chinese Blockchain Innovation Fund announced its first investment during the opening ceremony - in the Zhejiang Xiongan Blockchain Strategic Development Research Institute.
Li Xiaolai, a famous Chinese Blockchain investor, was appointed as manager of the fund, and Xu Xiaoping, the co-founder of ZhenFund, will be an advisor.
The Xiongan Global Blockchain Innovation Fund is owned by Yuhang District Government of Hangzhou, the Future Science and Technology City Administrative Committee, and the Hangzhou Yanqi Investment Management, which is also the fund operator. The founders of Hangzhou Yanqi Investment Management, Handan Investment and INBlockchain, have some blockchain experience with investments in altcoins such as Zcash (ZEC), EOS (EOS), Qtum (QTUM) and Siacoin (SC).
Hangzhou Blockchain Industrial Park
Hangzhou Blockchain Industrial Park was opened on Monday with the aim to be a global hub for Blockchain technology, according to several local media. It aims to create an ecosystem for development of business ideas that use crypto-technology. Ten Blockchain start-ups were presented during the official ceremony. The opening came several days after International Blockchain Investment and Development Center, a central government-backed initiative, was cancelled over legal problems.
Hangzhou Blockchain Industrial Park is located inside the Sci-Tech City (Zhejiang Hangzhou Sci-Tech City), a government-owned innovation center. Hangzhou is the fourth-largest city in the People`s Republic of China and is one of the leading technological hubs worldwide. It has a lot of start-up incubators such as Fudi Start-up Park, Dream Town, Taobao E-commerce Park, Tencent Start-up Base and Zhejiang University Science and Technology Park.
The city is considered the “e-commerce capital” of China because it added more than USD 13 billion in value in 2015, according to the local commerce department. Internet giant Alibaba was established in Hangzhou in 1999 and it maintains its global headquarters in the city.