SHENZHEN (Realist English). Shenzhen will become an international semiconductor and electronics supply hub with a new trading exchange. This is reported by the Hong Kong South China Morning Post.
The Electronic Components and Integrated Circuits International Trading Centre Co received its business license on December 30. The trade organization has an initial capitalization of 2.1 billion yuan ($304 million) and is funded by 12 state-owned enterprises and private companies. Its largest shareholders include telecommunications equipment manufacturer China Electronics Corp (CEC) and the local government fund Shenzhen Investment Holdings.
CEC and subsidiary China Electronics Information Service Co each invested 380 million yuan in the trading centre, securing a similar 17.8 per cent interest for each firm, while Shenzhen Investment injected 760 million yuan to obtain a 35.7 per cent stake. Other backers include electronics firm Shenzhen Huangqiang Industry Co, with a 3.5 per cent share, and chip firm Shannon Semi, with a 1.7 per cent stake.
Shenzhen, known as China’s Silicon Valley, is home to many large Chinese technology companies, including video gaming and social media giant Tencent Holdings, drone manufacturer DJI, and telecoms equipment makers Huawei and ZTE Corp. It is also the site for a major chip plant of SMIC and the largest manufacturing complex on the mainland for Taiwanese firm Foxconn Technology Group at the Longhua Science and Technology Park.
In 2020, Chinese President Xi Jinping chose Shenzhen as a world-class innovation center and a model for economic reforms.
