Shanxi Taihang Industrial Fund was officially launched in Taiyuan, capital of the province, on Sept 12.

It is a government-backed fund of funds (FOF) with a total value expected to reach 105 billion yuan ($ 15.87 billion). The fund will contribute to optimizing the industrial structure, upgrading traditional industries and pushing the reform of State-owned enterprises (SOEs), as well as the development of tourism in the province.

At the launch ceremony, it signed strategic cooperation agreements with nine institutional investors, including China Resources Capital Management, Shanxi Securities, Industrial Bank (China) and Phoenix Tree Capital Partners, with a total investment of 20 billion yuan.

"To establish the fund is a key step in the development of Shanxi," said Zhang Jiongwei, president of Shanxi Finance Holding Group.

"The province is upgrading its economic structure and the fund will play an important role in connecting the real economy with capital," he added.

The ceremony also witnessed the establishment of Jiayu Capital, a subsidiary of Phoenix Tree Capital Partners in Shanxi.

The largest commercial FOF in China, Phoenix Tree Capital has contributed a lot to Shanxi's economic transformation.

The company will continue to promote SOE reforms and tourism development in Shanxi, and provide more innovative financial services for the real economy in the province, according to Liu Qiankun, president of Phoenix Tree Capital.

The launch ceremony of Shanxi Taihang Industrial Fund takes place in Taiyuan, capital of Shanxi province on Sept 12. [Photo/xinhuanet.com]

Zhang Jiongwei, president of Shanxi Finance Holding Group, speaks at the launch ceremony on Sept 12. [Photo/chinanews.com]