Shenzhen, a technology hub in southern China, is setting up a 10 billion yuan ($1.4 billion) industry fund to invest in artificial intelligence (AI) and robotics, with a focus on AI software, hardware, and embodied intelligence, according to state news agency Xinhua citing local authorities.
The fund is part of the city’s broader push to strengthen its position as a global hub for AI and robotics innovations through talent development, favourable policies, and expansion of commercial use cases.
Located in the southern Guangdong Province and home to established tech giants like Huawei Technologies and Tencent Holdings, Shenzhen currently houses over 2,600 AI companies, including six AI unicorns; as well as nine robotics unicorns and 34 publicly-listed robotics companies, according to Lin Yi, director of the Shenzhen AI Industry Office. Lin also serves as the deputy director of the Shenzhen Municipal Industry and Information Technology Bureau.
The southern metropolis plans to mobilise 4.5 billion yuan ($620.9 million) in policy funding this year to offer subsidies to AI enterprises. Starting in March, the policy funding will be available for applications by AI enterprises in the form of vouchers. These vouchers cover up to 60% of the cost of training an AI model, with a maximum of 10 million yuan ($1.4 million) per enterprise.
“Shenzhen will adopt even more ambitious and open policies, connecting global and national innovation resources. For international collaborative projects, we will provide up to 30 million yuan ($4.1 million) in support,” Lin was quoted as saying by the South China Morning Post (SCMP). Officials in Shenzhen reportedly target to maintain an over 10% growth in R&D investment.
Moreover, the city plans to implement measures to attract young talent, including a programme that rewards companies with cash incentives for hiring top-tier talent and enables the talent to access affordable housing and preferential interest rates.
In the future, Shenzhen also aims to guide the banking sector in stepping up support for tech-related loans and encourage the insurance industry to develop products for smart driving and drones.
The 10 billion yuan industry fund is the latest set up by the Shenzhen government to promote funding for the city’s technological innovations.
In 2018, Shenzhen set up a 10 billion yuan government guidance fund Shenzhen Angel FOF, which it claimed to be China’s largest government-financed angel fund at the time, for seed- and early-stage startups. In late 2023, Shenzhen Angel FOF built a smaller 2 billion yuan ($275.9 million) fund dedicated to innovative tech startups at the seed stage.
The city recorded the addition of 152 private equity (PE) and venture capital (VC) funds in 2024, with over 1.5 trillion yuan ($206.9 billion) in combined assets under management (AUM), according to data from the Shenzhen Private Equity Funds Association.
