Shenzhen Municipal Government Guides Funds Into Stock Optimization "New Normal"

After a few years of rapid development, as the main force of private equity industry investment, government guided funds are entering the era of stock optimization, and cleaning up sub funds has become the current "new normal".

On March 22, 2021, Shenzhen guidance fund investment Co., Ltd. and Shenzhen Innovation Investment Group Co., Ltd. jointly issued the notice on Shenzhen guidance fund terminating cooperation sub fund and reducing scale sub fund.

According to the administrative measures of Shenzhen municipal government investment guidance fund and the implementation rules of Shenzhen municipal government investment guidance fund management measures, Shenzhen municipal government guidance fund has not signed the fund partnership agreement within one year, has signed the fund partnership agreement, but has not completed the industrial and commercial registration within one year, or the initial capital has not been actually in place, and after the completion of the first phase of actual investment The sub funds that did not carry out investment business during the year were sorted out, and the sub funds whose contracted scale was smaller than the scale of the meeting and had no follow-up financing progress were sorted out. After communication and confirmation, 19 sub funds were terminated and the scale of scale reduction was reduced, and a total of 5.717 billion yuan of subscribed capital was recovered.

Government guided funds are entering the era of stock optimization, and cleaning up sub funds has become the current "new normal". Visual China

The notice said: it is hoped that the relevant cooperative institutions will strictly abide by the relevant provisions of the municipal guiding fund and complete the signing, investment and investment of the sub fund within the prescribed time limit. The Shenzhen guidance fund will establish a dynamic clearing mechanism to timely sort out the sub funds that have not been set up and operated within the time limit.

This is not the first time that the Shenzhen municipal government has guided the fund. As early as September 2019, the Shenzhen municipal government guidance fund announced the list of 25 clearing sub funds and 12 downsized sub funds. Among them, 25 sub funds were cleared up, with a total fund size of 64.552.6 billion yuan, and the amount of pledged capital contribution of more than 14 billion yuan was recovered from the sub funds, which has aroused widespread concern in venture capital circles. In fact, clearing the sub fund is the daily work of Shenzhen guiding fund, but the centralized publicity is the first time.

In July 2020, the Shenzhen Municipal Government's guidance fund was announced again, and 21 sub funds were terminated and reduced. The total amount of capital contribution of the guiding fund was 5.109 billion yuan.

In addition to the Shenzhen Municipal Government's guiding fund to continuously clean up its sub funds, the Beijing Science and technology innovation fund also has a similar practice. On September 25, 2020, Beijing Science and Technology Innovation Investment Management Co., Ltd. released the announcement of Beijing Science and technology innovation fund's plan to terminate the cooperative fund, which indicated that in accordance with the provisions of the management measures of Beijing Science and technology innovation fund, the investment decision-making committee approved the termination of Junlian capital phase V RMB comprehensive growth fund, baidu venture capital original innovation fund and Zhencheng investment phase II The decision-making of the cooperation between the four funds, namely, the civil currency Achievement Transformation Fund and the Beijing joint venture innovation equity investment management center (limited partnership), and the science and technology innovation fund.

In January this year, Beijing Science and Technology Innovation Fund announced again that, in accordance with the provisions of the "Beijing Science and technology innovation fund management measures", the investment decision-making committee approved the decision to terminate the cooperation between Beijing gaotejia Huike fund and the science and technology innovation fund.

It can be seen that the local government guiding the fund to clean up the sub fund is becoming the new normal in the stock optimization era. In November 2020, Wan Shun, member of the Party committee and deputy general manager of Nanjing Zijin investment group, mentioned in an exclusive interview with the 21st century economic report that cleaning up sub funds is a normal operation rather than a movement.

"In fact, we have been doing the task of cleaning up the sub fund, but it is not a campaign cleaning up, but a normal operation and management. We will make different assessments at different stages, such as how to evaluate the initial stage and exit period. The key is to evaluate the investment period year by year. If some aspects fail to meet the requirements, we will remind GP. If it is done badly or violates a lot of regulations, we will even stop the investment of the fund. " Wan Shun said.

"The Shenzhen municipal government has guided the fund to clean up a number of problematic funds, which has led to a good start. It's not that the Shenzhen guidance fund is out of money, but they are constantly regulating. " Earlier in September 2019, Xue he, chairman of Xiamen venture capital, said in an interview with the 21st century economic report that "abiding by the contract is the fundamental Charter of the fund manager, and the fund manager has no reason to violate the contract. If the fund manager doesn't abide by the contract, how can they build up confidence for other small investors and how dare they hand over the funds to you for management? "

Xue he said at that time that Xiamen would also learn from Shenzhen. For fund managers who have already approved their investment commitments, if their social funds are not raised in place within one year, they will also withdraw their investment commitments; for funds that have signed a partnership agreement, but have not received payment at the stage time, or follow-up payment problems, there will also be corresponding plans. In addition, because the fund investment is carried out step by step and most of the funds are paid in batches, the funds that have already paid will also be restricted by participating in the compliance management.

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