The Chinese government has launched an RMB100 billion (US$14.55 billion) fund, in an effort to invest and support the fast-growing Internet companies in the country, while Chinese regulators increasingly tightened controls over the sector.
The China Internet Investment Fund will be overseen by the CAC (Cyberspace Administration of China) and the Ministry of Finance. According to state news agency Xinhua, the funding will be done by capital from the fiscal budget of the central government, and six strategic investors including China Telecom, China Mobile, China Unicom, the Industrial & Commercial Bank of China, CITIC Guoan Group, and China Post Insurance.
The move has come at a time when regulators in the country are tightening the control over how information is spread over the Internet.
The Ministry of Industry and Information Technology just said However, no individuals or organizations are permitted to install VPNs (Virtual Private Networks) which could be used bypass China’s “the Great Firewall” without proper regulatory clearance.
Earlier, the ministry had needed all contenders for Internet services in China to give real names and identification as a mean to get the service, followed by the same requirements that were put in place for the mobile phone users.
Also, no information was unveiled concerning the unit that will be handling the investment activities of the fund, as the most state-backed funds give a little public disclosure in the country. However, according to the official reports by Xinhua, the investment fund will be channeled by three principles: follow government investment strategy, adhere to market operation and professional management.