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2 posts from April 2009

Chinese Government Injects $23.7 mm into Chinese VC Firms to Support Technology Start-ups

The Chinese Ministry of Science & Technology (MOST) and the Ministry of Finance (MOF) recently signed an equity investment agreement with six Chinese local VC firms to invest a total of RMB159mm (US $23.7mm) seed capital into each of the six VC firms. The administrative entity of this project is Technology SMEs Innovation Fund Management Center under MOST. These six VC firms are Wuhan Huagong Venture Capital Co., Ltd. (HUSTVC), Shanghai Venture Capital Co., Ltd., China-Singapore Suzhou Industrial Park Development Co., Ltd., Jiangsu High-Tech Investment Group,Shandong High-tech Investment Corporation and Hefei Venture Capital Co., Ltd. The injection of capital to these firms ranges from RMBRMB16mm (US $2.4mm) to RMB55mm (US $8.4mm), which will account for 11.92% to 28.89% equity ownership by the government in these firms. After receiving the seed capital each firm is responsible for setting up a fund to invest exclusively in technology SMEs in their early development stage. Each VC firm will apply leverage no more than 1:10 and will raise more capital from more investors esp. those non-government entities. It is estimated that, with the leverage, the six firms can provide financing up to RMB1.04billion (US $156mm). This project is one of Chinese central government’s efforts... Read more →

China Introduced a Subsidy Program for Solar PV

The Ministry of Finance (MOF) and the Ministry of Housing and Urban-Rural Development (MOHURD) jointly issued two important documents to develop China’s domestic solar PV market last week. The two documents are numbered 2009-128 and 129. Through the subsidy Chinese government will establish model buildings with integrated PV systems throughout the nation, hoping to improve the abilities of design and installation for such buildings, production ability for BIPV and solve the problem of lack of application technology standards. Non-building related programs such as PV power plants are not qualified for this subsidy. The subsidy is RMB20/watt (US $2.94/watt) in principle, adjustable depending on the degree of the integration of solar PV with the building and how advanced the technology is. In addition, the subsidy will be modified annually according to the industry’s situation. The subsidy of RMB20 will cover 50% of the cost to purchase solar panels and to install them onto the building. According to MOF and MOHURD, the cost for solar panel has dropped below RMB20/watt and installation cost is about the same. With the subsidy the cost for each watt of electricity is expected to drop to RMB20. 70% of the subsidy will be trusted with provincial... Read more →