The Bohai Industrial Fund, which is to be headquartered in north China's port city of Tianjin, has entered the final stages of implementation, said the city's mayor Dai Xianglong.
The Bohai Industrial Fund will be the first investment fund to be set up without the participation of overseas trustees, said Dai.
Bohai Industrial Fund will provide Tianjin with new channels for direct fund raising, said Dai, who served as governor of the People's Bank of China, the country's central bank, before becoming the mayor.
"The State Development and Reform Commission approved the framework for establishing such an investment fund last November," said Dai, adding that specialists and government officials have been working over the past few months on how the fund will be administered.
The fund will be used to finance modern, innovative manufacturing businesses, high-tech projects, and infrastructure in the Bohai Sea Rim.
Half of the fund will be invested in projects in Tianjin.
Bohai Industrial Fund, which will be capped 20 billion yuan (about 2.5 billion U.S. dollars), is initiated by China Life Insurance Group, China Development Bank, the National Council of Social Security Fund, the Postal Bank, Bank of China Group and Tianjin Teda Investment Holdings Co., Ltd.
The first phase has raised 6 billion yuan (about 750 million U.S. dollars).