China's first private equity fund for financing media companies went into operation Monday with an initial fund of 2 billion yuan (293 million U.S. dollars).

China Media Capital (CMC) would focus on restructuring the media industry and encouraging innovation, said CMC president Li Ruigang.

"CMC will finance selected media companies to help them grow, restructure and merge."

The fund would also strive to help Chinese media companies to "go global," Li said.

CMC has not announced any specific financing projects yet.

The fund was approved by the National Development and Reform Commission in April 2009. It plans to raise 5 billion yuan in all.

CMC's sponsors and investors included Shanghai Media Group (SMG), China Development Bank and other Chinese media and financial institutes, Li said.

Li Ruigang is also president of SMG, one of China's largest media groups.