CHINA will soon unveil a plan to create 200 industry funds with assets totaling 100 billion yuan (US$14.7 billion) to support seven new growth industries and encourage capital investment in these sectors, a Ministry of Commerce official said yesterday.

"The National Reform and Development Commission is working on the draft plan which will allow both Chinese and foreign investment into these key areas," said Zhang Yingxin, deputy director general of China Investment Promotion Agency under the Ministry of Commerce.

"I believe the plan will be released very soon？？？within a few months," Zhang told the 2010 Sustainability Conference in Shanghai yesterday.

The government stimulus package will involve 10 billion yuan (US$1.47 billion) from the national treasury and another 10 billion yuan from local governments, she said.

The State Council, China's cabinet, has named environmental protection, information technology, biomedicine, new energy, advanced equipment manufacturing, new materials, and new-energy vehicles as the seven new growth industries.

"The Chinese government will work on a series of follow-up policies to encourage home-grown companies to expand abroad and to attract foreign capital in these new sectors," she said.

In the next two to three years, the State Council will approve a total of 200 industry funds to fuel growth in these cutting-edge sectors.

The Ministry of Commerce will work with the National Reform and Development Commission on favorable follow-up policies to support firms in these sectors.

The State Council reaffirmed early this month that it will continue to encourage investment from banks, venture capitals and private equity funds to fuel growth of these seven industries.