The Wuxi Taihu (SPD) Private Equity Fund was launched on March 14. The fund will optimize industrial structure, upgrade traditional industries and develop the advanced manufacturing and modern services industries, said Wuxi mayor Wang Quan.

The fund was jointly set up by the State-owned financial investment platform Wuxi Financial Investment Group Co and the Global Fortune 500 Shanghai Pudong Development Bank, with 10 billion yuan ($1.53 billion).

It is the city's first government-backed private equity fund?of funds (FOF),?with an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities.

The foundation of sub-funds will progress to include aviation- and ocean-industry funds and overseas buyout funds.

Wang urged Wuxi Financial Investment Group Co to propel industrial finance innovation and to develop into an influential comprehensive financial holding group.