Shanxi province was committed to supporting the real economy and driving industrial transformation and upgrading by deepening reforms and innovations in government investment fund management during the 14th Five-Year Plan period (2021-25).

Government investment funds were allocated to 248 projects totaling 33.6 billion yuan ($4.79 billion) across all 11 cities in the province, with a focus on key areas including high-end equipment manufacturing, biopharmaceuticals, wind energy, drones, and semiconductors.

Shanxi’s Taihang Fund, the largest provincial government-guided fund management platform, supports fund establishment, fundraising, and market-oriented operations, with a specialized team addressing risk resolution and offering tailored solutions for projects facing exit challenges or other risks.

Shanxi Xinyu Pharmaceutical Co, for example, faced development hurdles due to insufficient R&D funding. To address this, Taihang Fund, in collaboration with the Jinzhong Development Zone where the company is located, established the Pharmaceutical Industry Development Fund and the Medical Industry Park Development Fund, investing 30 million yuan in Xinyu Pharmaceutical through equity and allocating 95 percent to product development, enabling the company to initiate R&D for more than 10 products.

Taihang Fund dissolved two underperforming subsidiaries this year, advancing its streamlined governance efforts. In 2026, focus will remain on the financial sector to further support industrial development across the province.