China creates $12 billion fund for southern Greater Bay Area

China launched a government-backed private equity fund with $12.8 billion of capital to drive the integration of Hong Kong, Macao and nine cities in Guangdong province, Caixin reports.

China has been planning to create a “Greater Bay Area” encompassing the eleven cities since 2009. The cities—which also include southern tech hub Shenzhen, provincial capital Guangzhou and manufacturing hotspots Foshan and Dongguan—combined account for 15% of China’s gross domestic product.

The new fund will invest in high-tech industries in the region, promoting startups in key emerging sectors and helping these high-tech businesses set up research facilities in Hong Kong, with its strong pool of talent.