The city government of Shenzhen, China, is backing a dedicated blockchain investment fund, soon after Hangzhou city supported a similar effort.

Announced at a blockchain event in the city on Sunday, hosted by the China Electronic Commerce Association, the fund aims to invest 500 million yuan ($80 million) in blockchain startups in Shenzhen during its first phase.

Notably, through a public-private partnership, 40 percent or $32 million of the fund will come from an angel fund that was launched in late March by the Shenzhen municipal government. The remainder will be led by the private sector, according to a report by Sohu.

The angel fund has a total of 5 billion yuan ($800 million) to invest in the city's startups, around 4 percent of which will now be allocated to local blockchain projects.

The day-to-day operation of the new fund will be managed by two state-owned investment firms, supervised by the city government commission that oversees all state-owned assets, the report said. In light of that, Liu Zhongpu, a ocal government official and a commissioner of the Shenzhen government's advisory commission, will serve as an adviser to the fund.

The news comes just weeks after the country's Hangzhou government backed the launch of the Xiong'An Global Blockchain Innovation Fund, which has $1.6 billion to invest in innovative startups – 30 percent of which will come from the city.

Shenzhen image via Shutterstock