The city of Shanghai has begun to raise money for China’s first private equity fund to specifically target financial institutions, the South China Morning Post reported. The fund, which was approved by the National Development and Reform Commission (NDRC) two years ago, will raise US$1.2 billion in its first round and ultimately aims to reach US$2.9 billion in total assets. Investment banks China International Capital Corp and Shanghai International Group will invest and manage the fund. The two banks on Tuesday set up a 50-50 joint venture called Jinpu Investment Fund Management to oversee fund raising and operations. The launch of the fund is part of Shanghai’s effort to build a reputation as a global financial center by 2020. China has been attempting to boost its domestic private equity industry in order to compete with foreign players.