Guoxin Energy Development Group, a State-owned energy firm in Shanxi, signed a strategic cooperation agreement with Shanxi Financial Investment on Feb 23, according to Xinhua News.

Under the agreement, the two companies will set up a fund of 6 billion yuan ($8.7 billion) to invest in the industries of new energy, traditional Chinese medicine, tourism, big data and innovation in Shanxi.

The signing ceremony takes place in Taiyuan on Feb 23. [Photo/Xinhua]

"Shanghai Jinran Energy, a subsidiary of Guoxin Energy Development Group will work with Zhonghesheng Capital Management, a subsidiary of Shanxi Financial Investment Shareholding on the details of the project," said Liu Jun, general manager of Guoxin Energy.

Wang Junbiao, general manager of the financial group, expressed his confidence in the cooperation.

"It will promote the combination of finance and industry, and contribute to economic innovation and development in Shanxi," he claimed.

Guoxin Energy supplies 95 percent of mixed gas in the province, while Shanxi Financial Investment, as the leader in the local financial market, is devoted to economic transformation and reform in the area.