China SME Development Fund

China SME Development Fund is a state-backed fund of funds (FoF) established to support the development of small and medium-sized enterprises (SMEs) in China. It was officially incorporated as a mother fund company in 2020, following an initial State Council decision in 2015. The fund is managed as a private equity and venture capital fund manager, operating on market-oriented principles. It primarily acts as a Limited Partner (LP) by investing in other venture capital funds, but also engages in direct investments into companies. The fund focuses on early-stage, growth-stage, and innovative SMEs, particularly those in strategic sectors like high-end manufacturing, information technology, biomedicine, and new materials. The Ministry of Finance is the largest shareholder.