The fund, in which the Nanchang City and a wholly-owned financial subsidiary under the wing of China Development Bank, one of the three policy banks in the nation, invest CNY 5 billion in total, is expected to be able to bring along investments of CNY 20 billion. The fund is founded in a way of limited partnership (LP), with duration of 12 years, including investment period of nine years and recovery period of three years. In addition, the two parities jointly established a firm specializing in the management of the fund.

Zhang Xuguang, president of the financial firm, said that the fund integrates the city government, company, land, and finance and will lift the city's market-oriented financing channel and innovation ability. The fund, which is expected to bring along other funds with a scale four times of its own, will attract social capital and solve capital shortage problem for the city's economic development.