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China's provinces launching more state capital investment firms: media

SHANGHAI (Reuters) - Twenty-one of China's provinces have set up 52 firms to invest public funds, the state-owned Economic Information Daily said on Wednesday.

The move comes after China said at the end of 2016 it will allow local governments to meet "reasonable" funding requirements to support economic growth this year, even as it sought to curb burgeoning debt and rein in credit growth.

The firms have been set up by State-owned Assets Supervision and Administration Commissions at the provincial and city levels and will be investing state funds, the paper said.

SASACs in Shanghai, Zhejiang, Sichuan, and Heilongjiang already have plans for investment firms, it said.

The Shanghai firm will set up a fund to invest 6.25 billion yuan ($930.47 million) in innovative tech firms, the paper said, adding that the firm will have a total of 30 billion yuan to invest.

Beijing has been aggressively promoting public-private partnerships, hoping they could assist local governments to win private investment to fund projects, helping to cut their high debt levels and reduce their reliance on off-balance sheet borrowing.

(Reporting by Engen Tham and Wang Jing; Editing by Lisa Twaronite and Kim Coghill)