Co-initiated by China Merchants Capital and Shandong Port Group, or SPG – the giant ports operator based in Qingdao city in East China's Shandong province – the new Shandong Land-Sea Linkage Fund was officially established on July 15.

The Land-Sea Linkage Fund reportedly marks a significant development in SPG's capital operations since its establishment on Aug 6, 2019. Furthermore, it completed the Asset Management Association of China's registration process on Aug 10, as a market-based fund with its fund size reaching 10 billion yuan ($ 1.5 billion).

SPG initiated the Land-Sea Linkage Fund during the 2019 Belt and Road Land-Sea Linkage Qingdao Summit on Sept 6, 2019 right after its establishment. It then joined hands with China Merchants Capital, a subsidiary of the China Merchants Group, to jointly prepare the launch of the fund which they will now operate.

Boasting a total asset size of 10 billion yuan, the Land-Sea Linkage Fund was registered in the Qingdao West Cost New Area. It mainly supports and invests in industries related to marine economic development – including comprehensive logistics, intelligent port and shipping services, the passenger cruising industry and tourism and the strategic emerging industry.

Through capital generation and resource integration, the fund is reportedly poised to encourage the wider participation of nongovernmental capital in the development of physical industry. It is seen as serving national strategies, including the Belt and Road Initiative and environmental protection, as well as the high-quality development of the Yellow River basin.