China's Shanghai has established $1.5 billion fund to back 10 tech companies and 100 small-size firms focused on the development of metaverse services and products by 2025, the South China Morning Post has reported.
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With the initiative, Shanghai wants to "build advantages for future development" so that the city could become the "starting point for accelerating economic recovery." According to Shanghai government officials' estimates, the industry is expected to reach $224 billion by 2025.
Head of Shanghai's Economy and Information Technology Committee, Wu Jincheng, believes that industries like the metaverse are expected to "constantly spur new business schemes and models." He added:
"[These industries would] give rise to 'killer' applications and popular products, releasing huge market value."
In February this year, China's banking regulator warned against using the metaverse on the wide scale as the technology has become one of the main schemes for fraudsters to steal money through fund-raising for real estate in virtual reality. According to the China Banking and Insurance Regulatory Commission report, some companies were advertising illegal schemes related to the metaverse.
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