Harbin has launched a fund to promote the development of small and medium-sized companies.

The development fund, with a total investment of 150 million yuan ($21.77 million) by the municipal government, will be used to facilitate development of companies that develop new technologies, advanced business models and have huge potential.

The fund would make equity investments in companies doing business in the agricultural, industrial, and science and technology sectors, focusing on returns just like any private investment fund would do.

Unlike establishing investment and financing platforms, the Harbin government set up the fund to directly invest capital into companies and share risk with them.