Qingdao Municipal People's Government announced that it will establish a new and old kinetic energy conversion fund of 300 billion yuan ($47.23 billion) on April 20.

The fund adopts a three-tier structure of guiding funds, parent funds and sub-funds. With the support of the guidance funds of Shandong provincial government, Qingdao Municipality and its subordinate jurisdictions set up the government-guided fund to attract domestic and foreign financial institutions, enterprises and other social capital to initiate the establishment of the parent fund group. The parent fund will establish or increase a number of sub-funds to leverage social capital to form an industrial fund of 300 billion yuan.　　

Qingdao Mayor Meng Fanli said that the new and old kinetic energy conversion fund will focus on five major areas. It will support advanced characteristic industries, give priority to the projects of modern marine development, smart home appliances, rail transit equipment, automobile manufacturing, modern finance, modern logistics, modern tourism, business services and health care for the elderly.

The fund is to support the development and growth of emerging industries, giving priority to the projects of new generations of information technology, biomedicine, high-end equipment, energy conservation, environmental protection and cultural creativity.

Meanwhile, it will also support transformation and upgrading of traditional pillar industries. It will give priority to projects in six industries, such as trade services, food and beverages, textile and clothing, machinery and equipment, the rubber and chemical industry and modern agriculture. 

In addition, it will support projects in line with the national Belt and Road Initiative, innovative companies and key personnel innovation projects at municipal level or above.

The major project database of new and old kinetic energy conversion in Qingdao has been preliminarily established with 1,000 projects. Qingdao has selected 50 quality projects that are suitable for investment. 

The total planned investment is 141.6 billion yuan, covering 16 sub-sectors in the three major areas of traditional pillar industries, emerging future industries and characteristic and advantageous industries.

Shandong is China's first comprehensive test area for new and old kinetic energy conversion. The pilot area is led by the three core cities of Shandong, namely Jinan, Qingdao and Yantai. 

Shandong has introduced “three-step” goals for 2022, 2028 and 2035. New kinetic energy is expected to dominate its economic development by 2022.