Fund set up for startups

China is to set up an investment fund of 40 billion yuan ($6.45 billion) to support startups in emerging industries, part of the government's efforts to nurture new growth engines amid the slowest economic expansion in almost 25 years.

The capital will be government-led, by combing existing funds for infrastructure construction and development of emerging industry, and there will be contributions from large companies and financial institutions, according to the decisions at the executive meeting of the State Council on Jan 14, which was presided by Premier Li Keqiang.

A statement released after the meeting said fund management companies will be selected through public bidding to manage the fund and they will be the sole decision-makers in investment. Non-government investors will have a priority in distribution of dividends before the government.

The meeting also decided to grant foreign investors wider access to finance, education, culture and medical care industries. Also, free trade in the service sector between the mainland and Hong Kong and Macao will be accelerated, the statement said.

The development of high-end and high value-added service industry, especially in transportation, telecommunication, research and design, and energy conservation, will be encouraged to strengthen competitiveness and promote trade in services.

China's total trade increased 3.4 percent in 2014, missing the target of 7.5 percent. The government revised its growth target for foreign trade to 6 percent for 2015.

The meeting also approved a draft regulation on museums to regulate the setting-up, changes and closing of both State-owned and private museums. The draft offers equal tax exemption to private galleries that was previously only enjoyed by State-owned museums; and bans these institutions from illegal collection of artifacts or goods from unknown sources.