China to create new fund to boost industries in poor areas

China is to create a fund to mobilize state-owned enterprises (SOEs) to help poverty-stricken areas develop industries, an official said Thursday.

The fund, with a initial funding of 10 billion yuan (1.48 billion U.S. dollars), will reach 100 billion yuan by 2020, said Huang Chengwei, vice director of the International Poverty Reduction Center in China, at a press conference.

Regulated by the state-owned assets watchdog, it is designed to operate by "market rules" and encourage major SOEs to join the fund, he told reporters.

The State-owned Assets Supervision and Administration Commission will launch the fund on October 17, China's third poverty relief day, and release more details about its structure and operation, according to Huang.

Developing local industry is a major frontline in the battle against poverty, and China has supported poor regions' efforts to develop local specialty industries based on their resources, such as the photovoltaic industry, tourism and e-commerce.

To fight poverty, central and provincial governments have arranged a record 66.7 billion yuan and 40 billion yuan of special funds respectively, according to a statement from the press conference.

China has lifted more than 600 million people out of poverty in the past three decades, about 70 percent of the global poverty reduction figures.

China plans to lift all of its poor out of poverty by 2020. Endi