The first venture capital company in Liaoning Province, in northeast China, was set up Wednesday by the provincial government in cooperation with a local software company in a bid to promote the development of high-tech industry, Xinhua News Agency reported Wednesday.

With a registered capital of 100 million yuan (about 12 million U.S. dollars), the Dongfang Information Industry Start-up Investment Co. plans to provide capital for about 100 small and medium-sized firms specializing in software development, to be chosen mostly locally in the next three years.

The investment company, jointly funded by the provincial government and Dongfang Software, will also offer advice and services concerning business management, marketing and human resources development.

The company will follow the international practice in venture capital management by preventing and evading market risks through listing itself on a stock market and transfering stock rights while promoting the development of the local information industry.