The fund, with a registered capital of 147.2 billion yuan ($21 billion), will invest in both growth-stage and mature companies in areas such as new materials, next-generation information technology (IT) and power equipment, the newspaper said.
The new fund will invest throughout the entire manufacturing industry value chain, the article said, citing Zhang Yuzhe, a researcher at the National Development and Reform Commission (NDRC).
The fund was set up by 20 stockholders, with the Ministry of Finance holding a 15.29 percent stake as the biggest shareholder, according to a separate report by the official Xinhua News Agency.
CRRC Corp, China's state-owned railway equipment maker, said in a statement on Monday that it plans to invest an initial 25 million yuan in the fund.
China has previously set up national funds that invest in the country's advanced manufacturing and integrated circuit sectors.
(Reporting by Samuel Shen and John Ruwitch; editing by Richard Pullin)