An official from Shanxi CSRC disclosed yesterday that the first large PE fund initiated by public finance with the size of roughly RMB2.00B will be officially established in Jinzhong City, Shanxi Province in mid-November. This indicates that the first campaign of capital market in Shanxi will be started in Jinzhong. It was said, "By the year end, five to eight equity investment firms will make their presence in Jinzhong with the market value of over RMB500.00M, which will speed up the development of industrial cluster of PE equity fund and give a helping hand to the economic transition in Shanxi Province."

The official also exposed that above 30% of the PE fund will be committed to the investments in Jinzhong, coupled with another 40% being expected to focus on the other cities in the Province, a total of 70.0% of the fund will be used in Shanxi Province, or 10% in Jinzhong and 60% in other cities of Shanxi. The business tax and income tax of the two kinds will be fully refunded.

In addition, Jinzhong Municipal Government expects that the opening fiscal and taxation policy will attract companies, securities firms and banks within and without the Province to be part of the development of the industrial cluster of PE investment fund.

Source:pedaily.cn