China will set up a 40 billion yuan ($6.45 billion) investment fund to support startups in emerging industries, part of government efforts to nurture new growth engines amid the slowest economic expansion in almost 25 years.

The funding will come mostly from the government, which will combine existing funds for infrastructure construction and emerging industries, though large companies and financial institutions will also contribute, the executive meeting of the State Council presided over by Premier Li Keqiang decided on Wednesday.

A statement released after the meeting said fund management companies will be selected through public bidding and will be the sole decision-makers in investment. Nongovernment investors will have a priority in the distribution of dividends.