Shenzhen Capital, state-backed manufacturing fund launch $4b new materials vehicle

Source: Xi Wang/Unsplash

China’s state-owned national manufacturing fund and venture capital firm Shenzhen Capital have teamed up to launch a new materials fund with a corpus of 27.5 billion yuan ($4 billion), the VC firm announced on WeChat on September 11.  

Besides Shenzhen Capital and the 147.2 billion yuan ($22 billion) national manufacturing fund, its limited partners include Shenzhen Municipal Government Investment Fund, new economy-focused Kunpeng Capital and Shenzhen’s Luohu district investment fund.

The national manufacturing fund will invest as much as 22.5 billion yuan ($3.3 billion) in the fund. Shenzhen Capital’s fully-owned subsidiary Shenzhen Hongtu Investment Management will serve as its fund manager. 

Going forward, the fund will primarily invest in the new materials field, especially in inorganic non-metallic materials and other novel segments across the country.

Shenzhen Capital Group, which was co-founded by the Shenzhen Municipal Government and a group of investors in 1999, invests in high-tech companies in areas such as information technology, internet, new media, healthcare, new energy, new materials and advanced manufacturing. Its assets under management stand at 390.8 billion yuan ($57 billion).

As of June 2020, the group has invested in 102 new materials companies. Its portfolio includes titanium material manufacturer Western Superconducting Technologies, non-ferrous metal provider Western Metal Material, LIB cathode material and equipment supplier Beijing Easpring Material Technology, aluminium alloy material player Harbin ZhongFei New Technology, SZ-listed Dinglong Holdings and Jiuri New Materials.

China set up the national manufacturing fund in 2019 to invest in companies working on areas including new materials, next-generation information technology and electrical equipment. These three areas are among the 10 sectors that China has prioritised in its Made in China 2025 plan to dominate globally in technology.

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.