BEIJING, Sept. 11  -- Tsinghua Holdings, a technology conglomerate backed by Tsinghua University, is setting up China's first technology transfer fund with an initial investment of 500 million yuan ($78.42 million) to foster innovation in the high-tech sector.

The fund will invest in research and development projects, including medical and electronic technology, that can transfer scientific achievements into business projects, Xu Jinghong, chairman of Tsinghua Holdings, told China Daily on Wednesday.

The company, with total assets of about 170 billion yuan by June, plans to accelerate cooperation with global technology giants, including Facebook Inc, to expand its overseas presence.

"We are considering various cooperation models like equity investment, joint development of projects or undertaking their business in the Chinese market," said Xu.

He told China Daily last month that the company plans to invest at least 30 billion yuan for developing mobile chip technology.

"Mergers and acquisitions will help strengthen our technology research capabilities. But that is not what we are looking for. We want to enhance technology research after the M&A process or even develop independent research and development capabilities."

Xu shared his views after he joined a conversation with Premier Li Keqiang at the Annual Meeting of New Champions, hosted by the World Economic Forum in Dalian, Liaoning province.

"I have confidence that China will see stable and healthy growth in the next few years, with high-tech industries seeing even faster development," said Xu.

During the first six months, when the country's economic growth slowed to 7 percent from 7.4 percent in 2014, Tsinghua Holdings' profit increased 50 percent year-on-year. Its total assets rose to 170 billion yuan during the period under review, from 140 billion yuan in 2014.

"Innovation will help companies adapt to the economic 'new normal' and achieve smooth transition," Xu said.

The company is also planning to establish business incubators in South Korea, to support new startups and accelerate technology cooperation with local firms.

It manages two business incubators－Tpark and Innospring, in Silicon Valley, the United States.

The company also cooperates with Spanish telecom giant Telefonica SA on high-tech development.

"The deepening global economic integration is expected to get a further fillip with the development of Internet technologies. It is an ideal environment for the company to expand in the international markets," said Xu.

Tsinghua Holdings, a State-owned company funded by Tsinghua University, has a registered capital of 2 billion yuan. It controls shares of listed companies including Tongfang Co Ltd, Chengzhi Shareholding Co Ltd and Unisplendour Co Ltd.

(Source: Chinadaily.com)