China Knowledge reported that the Shanghai Automotive Industry Fund which was founded by the China Machinery Industry Federation and the government of Jiading District in Shanghai was officially launched on July 5 to raise a total of CNY 30 billion on auto related sectors including financing, logistics, exhibition and services.

The first phase of the fund raising is expected to reach CNY 5 billion.

The China Machinery Industry Federation will be the operator and manager of the private equity fund which will be invested in the financing, logistics, exhibition and service sectors. The fund, focusing on industrial upgrading in the auto sector is China first one that is under cooperative and intelligent management.

China produced 18 million automobiles in 2010. Shanghai is one of the country largest automobile manufacturing centres.

During the first five months of this year, China passenger car sales were 6.03 million units up by 6.14%YoY. In May, passenger car sales declined 0.11% from a year earlier the first decline since the beginning of this year.

According to statistics released by China Automotive Technology & Research Center China saw its auto output total 1.31 million units in May reflecting a MoM decline of 14.36% or a YoY increase of 22.56%.

(Sourced from China Knowledge)