An agreement is signed to set up a development fund for the reform of state-owned enterprises in Hangzhou, Zhejiang province on May 25. [Photo by Wang Gang]

A development fund of 60 billion yuan ($8.7 billion) for the reform of state-owned enterprises (SOEs) was jointly launched by China Reform Holdings Corporation Ltd, the state-owned Assets Supervision and Administration Commission of Zhejiang, and the government of Shangcheng district of Hangzhou on May 25.

China's State-Owned Assets Supervision and Administration Commission initiated the "double-hundred action" in 2018 in a bid to conduct in-depth reforms inside SOEs from 2018 to 2020 by selecting hundreds of SOE subsidiary corporations and regional key SOEs as demonstration enterprises. Currently, there are nearly 450 such enterprises on the national list.

The "double-hundred action" development fund for SOE reform, which was set up at the Fifth West Lake Summit on Global Alternative Investment Fund in Hangzhou, Zhejiang province, is aimed at building an investment platform for quality enterprises with a strong foundation for reform. The key targets of the fund will be those from emerging industries, non-listed companies in need of reform on diversified mixed ownership and listed companies that need acquisition and reorganization.

Zhejiang will provide 3 billion yuan to the fund, as well as a slew of preferential policies concerning finance and talent.