Image Source : China Visual
BEIJING, February 20 (TMTPOST) —— The Guangzhou Industrial Investment FOF and Guangzhou Innovation Investment FOF, under the direct leadership of the Guangzhou government, have been launched, with an aim to raise 200 billion yuan ($29.1 billion) in total, according to the announcement released last Saturday.
The 150 billion yuan ($21.9 billion) of Guangzhou Industrial Investment FOF is operated as a company. It focuses on investing in areas such as semiconductors and integrated circuits, new energy, biomedicine, advanced manufacturing, and new-generation information technology. A large number of industrial projects will be introduced to Guangzhou to boost its economic development.
While the 50 billion yuan ($729.65 million) of the Guangzhou Innovation Investment FOF will be run in a limited liability partnership to invest in innovation-driven and technology-driven projects in their early stage. It will also set up special funds that promote talents’ development and commercialization of scientific and technological achievements, an angel investment fund, and a seed investment fund, and the size of each one is 5 billion yuan ($729.65 million).
Gao Dongwang, President of Guangzhou Industry Investment and Capital Operation Holding Group, said at the announcement conference that the two FOFs will place great emphasis on reinvestments in the region, emphasize empowerment by shareholders instead of being general partners, not seek to take control of funds, in an endeavor to achieve the success of projects.
According to Wei Dahua, Executive Director of Guangzhou Industrial Investment FOF, investment from the FOF can account for a maximum 30 % of the total size of sub-funds, and will not intervene in decision-making of sub-funds. The management fees will be determined by the market. In addition, it is not a must for the fund manager to register in Guangzhou, and reinvestments in the region will not be less than 1.2 1 times as much as the investment. While the people in charge of the Guangzhou Innovation Investment FOF said investment from the FOF can account for as much as 50 % of the total size of sub-funds and reinvestments should be the same amount as the investment.
Guangzhou Industrial Investment FOF Ltd. and Guangzhou Innovation Investment FOF Partnership Enterprise were both set up last Monday, with registered capital of 60 billion yuan（$8.76 billion and 50 billion yuan($7.3 billion), respectively.
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