Recently, the municipal government of Yichang issued the equity investment management method, aiming to establish 5 billion Yuan Three Gorges industry guidance equity investment funds.

The funds, which were sponsored by the municipal government, mainly came from the special industrial fund of municipal budgets, the national and provincial support funds for the city\'s industrial development, other government funds and interest income from bank deposits and so on.

Yichang has established over 5 billion Yuan municipal industry guiding funds, by which an equity investment funds pool with more than 25 billion Yuan was formed driving more than 100 billion Yuan social investment through equity investment. These funds will mainly invest in Yichang\'s fine chemicals, food and biological medicine, advanced equipment manufacturing, new materials, cultural tourism, modern logistics, modern services, modern agriculture and other strategic emerging industries.

The guiding funds are under the management of a specialized team established by Yichang State-owned Capital Investment Holding Group. In the process of investing and operating, the guiding funds share instead of holding the stock in the sub-fund, and do not independently generate the establishment of equity investment enterprises. The investment of sub-funds does not exceed 30% of the equity of the firms; the total amount of the investment to the enterprise equity does not exceed 20% of the total capital of the sub-fund.

At present, Yichang has negotiated with enterprises like the China Three Gorges Corporation, Hubei Hi-tech Investment, determined their investment intention and came to agreement with more than 20 sub-funds amount to a total of 10.8 billion yuan.