People walk on the Zhongguancun Innovation Street in the Haidian district of Beijing, capital of China, on Jan 17, 2016. [Photo/Xinhua]

BEIJING - Beijing plans to set up an 8-billion- yuan (about $1.53 billion) fund for a facelift for Zhongguancun Street, a key thoroughfare in northwestern Beijing often called "China's Silicon Valley."

The government of Haidian district, where Zhongguancun is located, said it has established the Zhongguancun Street Operation and Management Company to pool the funds.

The company was set up by Zhongguancun Development Group, the State-owned Properties Investment and Management Co Ltd of Haidian District and Tusholdings.

The money will be used to renovate infrastructure, acquire property rights and invest along the 7.2-km Zhongguancun Street, according to a statement by the government.

The fund will help the high tech industry to upgrade and seek international development, the statement said.

Sources said low-end electronics shops will be rooted out to create a maximum of 100,000 square meters of space for international incubators to set up offices.