A factory belonging to a rare earth enterprise in Baotou. [Photo/Baotou news network]

Baotou finance bureau – in cooperation with Baogang Group in Baotou, China Venture Capital Co and China Finance (Beijing) Capital Management Co – recently set up a rare earth fund worth 2 billion yuan ($279.12 million) to support key enterprises in the rare earth industry chain.

The fund draws from the larger Baotou Zhenyu Investment Fund that the municipal government invested in the first half of the year in order to tap into the potential of the city's rare earth, military civilian integration, new energy and other industrial chains.

To boost the high-quality development of the rare earth industry, the bureau implemented a financial system of "policy + stock right + creditor's rights". To date, 70 rare earth enterprises have been granted various subsidies totaling 90 million yuan.

In terms of debt financing, the bureau organized several financing plan matchmaking meetings to help China Bohai Bank and China Merchants Bank meet capital demand of 270 million yuan for rare earth enterprises.

Subsequently, the bureau helped Industrial Bank and Meng Shang Bank provide 1.08 billion yuan in credit for eight rare earth enterprises.

Next, the bureau will focus on the development of rare earth industries in the city and help them receive additional financial support.