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Shanghai’s three leading industry mother funds were officially established.

According to Tianyancha information, the three leading industry mother funds were established on July 22, with a total investment of 89.03 billion yuan. They plan to invest in the three major industries of integrated circuits, biomedicine and artificial intelligence respectively. The fund managers are all Shanghai Guotou Pioneer Private Equity Fund Management Co., Ltd. (hereinafter referred to as "Shanghai Guotou Pioneer Private Equity Fund").

A senior person from an equity investment institution told the reporter of China Business News that this reflects Shanghai's determination to support new productivity through venture capital, which is expected to bring in "live water" of funds. Although the primary market faces many challenges, opportunities always exist, and the surging vitality of China's economic development comes from the constantly innovative real enterprises, especially the technology industry.

"As a market-oriented institution, we are very much looking forward to seeing the venture capital industry usher in fresh capital, give full play to the market-oriented and professional fund mechanism, invest in good projects, and contribute to the development of the science and technology industry," he also said.

These three leading industry mother funds are Shanghai Guotou Pioneer Integrated Circuit Private Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as the "Integrated Circuit Mother Fund"), Shanghai Guotou Pioneer Biomedicine Private Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as the "Biopharmaceutical Mother Fund"), and Shanghai Guotou Pioneer Artificial Intelligence Private Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as the "Artificial Intelligence Mother Fund").

Among them, the investment amount of the integrated circuit mother fund is 45.001 billion yuan, which will focus on integrated circuit related fields including but not limited to integrated circuit design, manufacturing and packaging and testing, equipment materials and components.

The investment amount of the Biomedicine FOF is RMB 21.501 billion, and will focus on biomedicine-related fields including but not limited to innovative drugs and high-end preparations, high-end medical devices, biotechnology, high-end pharmaceutical equipment, etc.

The investment amount of the Artificial Intelligence Mother Fund is 22.501 billion yuan, and will focus on investing in artificial intelligence-related fields including but not limited to smart chips, smart software, autonomous driving, smart robots, etc.

The executive affairs partners of the three leading industry mother funds are all Shanghai Guotou Pioneer Private Equity Funds, which represent the partnership externally and also serve as fund managers.

The establishment of the three leading industry mother funds has received support from a number of heavyweight investment institutions, including Shanghai Guojing Investment Development Co., Ltd., Shanghai State-owned Capital Investment Co., Ltd., Guotai Junan Securities Investment Co., Ltd., and Haitong Innovation Securities Investment Co., Ltd.

Shanghai Pudong Innovation Investment Development (Group) Co., Ltd., Shanghai International Trust Co., Ltd. and others participated in the investment in the integrated circuit mother fund and the biopharmaceutical mother fund. Shanghai International Group Co., Ltd., Shanghai Automotive Industry (Group) Co., Ltd., Shanghai Shenneng Chengyi Equity Investment Co., Ltd. and others all participated in the investment in the integrated circuit mother fund and the artificial intelligence mother fund.

Shanghai Minhang Financial Investment Development Co., Ltd., Shanghai Qingpu Investment Co., Ltd., Shanghai Lingang Economic Development (Group) Co., Ltd. and others participated in the investment in the biopharmaceutical mother fund. Shanghai Lingang Holdings Co., Ltd., Shanghai Jing'an Industry Guiding Equity Investment Fund Co., Ltd. and others participated in the investment in the artificial intelligence mother fund.

On July 5, Guotai Junan Securities and Haitong Securities both issued announcements on their participation in the investment. Guotai Junan Securities announced that its wholly-owned subsidiary Guotai Junan Zhengyu Investment Co., Ltd. intends to invest no more than RMB 1 billion to participate in the establishment of Shanghai's three leading industry mother funds. Among them, the integrated circuit mother fund will invest no more than RMB 500 million, the biopharmaceutical mother fund will invest no more than RMB 250 million, and the artificial intelligence mother fund will invest no more than RMB 250 million.

Haitong Securities also said that its wholly-owned subsidiary Haitong Innovation Securities Investment Co., Ltd. (hereinafter referred to as "Innovation Securities") intends to invest RMB 1 billion in the investment. Among them, Innovation Securities intends to invest RMB 500 million as a limited partner in the integrated circuit mother fund, with a shareholding ratio of 1.1111%; invest RMB 250 million in the biopharmaceutical mother fund, with a shareholding ratio of 1.1627%; invest RMB 250 million in the artificial intelligence mother fund, with a shareholding ratio of 1.1111%

Regarding the purpose and impact of the investment, Guotai Junan said that at the strategic level, it will actively implement the development requirements of the three leading industries of the Shanghai Municipal Party Committee and Municipal Government, assist the innovative development of Shanghai's three leading industries, cultivate new quality productivity, make up for the shortcomings of the industrial chain and key core areas, increase the intensity of "early investment and small investment", support original innovation and transformation of results, and promote industrial mergers and acquisitions.

"At the synergy level, Shanghai's three leading industry mother funds are large in scale and have a large number of projects, which can provide a handle for the company to leverage its comprehensive financial services advantages. In the subsequent projects of the mother funds, it can be foreseen that there will be a large number of synergistic business opportunities such as investment banking, wealth management, asset management, and financial advisory business. With enterprises as points, funds as lines, and regions as surfaces, through Shanghai's three leading industry mother funds, we can help companies build a modern investment bank that is comprehensively leading and internationally competitive." Guotai Junan said.

Shanghai's "Government Work Report" shows that in 2023, the total output value of Shanghai's strategic emerging industries will account for 43.9% of the total output value of Shanghai's industrial enterprises above designated size, and the scale of the three leading industries of integrated circuits, biomedicine, and artificial intelligence will reach 1.6 trillion yuan.

According to the "Government Work Report", in 2024, Shanghai will fully implement a new round of "Shanghai Plan" for integrated circuits, biomedicine, and artificial intelligence, cultivate and upgrade high-end industrial clusters such as new energy vehicles, high-end equipment, advanced materials, civil aviation, and space information, and accelerate the creation of future industrial pilot areas.