State-owned firms launch fund to raise $71m for China’s Greater Bay Area

A group of Chinese state-owned companies have set up an industry fund, aiming to raise a total of 500 million yuan ($71 million) to develop the Greater Bay Area, an integrated economic and tech innovation hub comprising Hong Kong, Macau, and nine cities in southern China.

The area, which the Chinese government sees as a potential rival to Silicon Valley in the US, is home to some 68 million people and has a combined gross domestic product (GDP) of about $1.5 trillion, roughly equivalent to that of Australia or South Korea.

The new fund seeks to raise 200 million yuan ($28 million) for its initial close and will primarily back companies in the fields of technology, new consumption, culture and entertainment, according to a recent statement.

Besides the Greater Bay Area, the fund will also look for investment opportunities in southeastern China’s Jiangxi province.

The fund has been launched by Yuexiu Industrial Fund, the investment platform of Chinese state-owned Yuexiu Group; a fund operated by Chinese national investment management firm GOFAR Holdings; and Huazhang Investment, a wholly owned private equity and venture capital unit of Chinese media firm Jiangxi Publishing Group.

China is witnessing a flurry of investment platforms being set up with government support and capital as the country seeks to reduce its longstanding reliance on high-tech imports.

Shenzhen Capital Group, one of the most active state-backed venture capital platforms in China, has injected nearly 40 billion yuan ($5.68 billion) into over 910 companies since the local government in southern China’s Shenzhen city established the firm in August 1999.

The company has enjoyed 140 exits through initial public offerings (IPOs), with 40.32 per cent in internal rate of return (IRR), according to statistics disclosed by China’s State-owned Assets Supervision and Administration Commission of the State Council in February 2019.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.