“Science and Technology Innovation Board Daily”, April 19 (Reporter Ao Jin) Recently, Guangdong Hengjian Investment Partnership (“Hengjian Investment Fund”) was established with an investment amount of 20.02 billion yuan. The LP is Guangdong Hengjian Investment Holdings Co., Ltd. (“Hengjian Holdings”) under the Guangdong State-owned Assets Administration Commission, and GP is Guangdong Hengning Management Co., Ltd., a subsidiary of Hengjian Investment Holdings.

First-tier market investors told the “Science and Technology Innovation Board Daily” reporter that the Hengjian investment fund mentioned above may be a special fund for key support areas or projects in Guangdong Province. “The fund is large, and Hengjian Holdings has a single investment. It is more difficult for ordinary equity investment funds to carry this size.”

Also, according to business information, Hengjian Investment Fund's GP Guangdong Hengning Management Co., Ltd. currently manages a number of sub-funds funded only by the Guangdong Guangdong-Macao Cooperation and Development Fund (limited partnership).

The Guangdong Guangdong-Macao Development Cooperation Fund invested 20 billion yuan. The LP is ICBC (Macau) Investment Co., Ltd. It is worth mentioning that recently, the Guangdong Guangdong-Macao Development Cooperation Fund, Hengjian Holdings, Zhuhai Grand Hengqin Group Co., Ltd., and Zhuhai Huafa Group Co., Ltd. jointly funded the establishment of Hengqin Guangdong-Macao Development Investment Co., Ltd. According to reports, the company was founded by Hengjian Holdings, with a registered capital of 20 billion yuan, and will become a major investment platform to support industrial development in the Hengqin Guangdong-Macao Deep Cooperation Zone.

Another Guangdong state-owned investor familiar with Hengjian Holdings told the “Science and Technology Innovation Board Daily” reporter that Hengjian Holdings, as a provincial state-owned enterprise, is the most representative state-owned investment group in Guangdong Province. “Some major investment projects of the Guangdong Provincial Government mainly invest, hold, and participate in shares through Hengjian Holdings. In other words, Hengjian Holdings can be said to be an investment gripper for the Guangdong Provincial Government. Therefore, it can also be seen that many of the projects that Hengjian Holdings is involved in are government projects.”

Hengjian Holdings is wholly owned by the Guangdong Provincial State-owned Assets Administration Commission. It is the only provincial state-owned capital operating company and industry-finance platform in Guangdong Province. Its main business includes three major sectors, including capital operation, fund investment, and equity management.

Currently, Hengjian Holdings holds shares in central enterprises such as China Southern Power Grid Co., Ltd., China Southern Airlines Group Co., Ltd., China General Nuclear Power Co., Ltd., Baosteel Zhanjiang Steel Co., Ltd., and China Aviation General Aircraft Co., Ltd.

In terms of investment and asset management, Hengjian Holdings supports the construction of major projects in Guangdong Province, including Pearl River Delta Intercity Rail Transit, China Aviation General Aircraft, and Zhangang Steel by building a provincial capital operation platform.

In terms of diversified investment business, Hengjian Holdings mainly carries out capital market investment, investment and acquisition, equity investment, fund investment and management, and nurtures and incubates strategic emerging industry projects through its own investment and development platform.

Overall, the equity investment funds managed and funded by Hengjian Holdings are not small. As of the first quarter of 2023, Hengjian Holdings managed 18 parent funds, with a total pledge size of about 75.863 billion yuan and a total paid-in scale of about 35.585 billion yuan, of which the company invested about 10.720 billion yuan with its own capital. At the end of the same period, 22 Guanzi funds had a total pledge scale of 38.197 billion yuan, and a total actual payment scale of 14.567 billion yuan.

The funds initiated by Hengjian Holdings all revolve around the central work of Guangdong Province as the main investment content, including a high-quality development fund for listed companies and a strategic industrial promotion and development fund, which mainly targets the manufacturing sector in Guangdong Province; a provincial and county economic high-quality development fund with a total pledge scale of 10 billion yuan, whose main goal is to use capital to empower county economic development; and the parent fund of the Guangdong Innovation Consortium, which has a total subscription scale of 10 billion yuan, focuses on independent technological innovation.

According to CIFA Venture Capital Connect - China data, up to now, Hengjian Holdings has accumulated 109 foreign investment incidents involving various projects such as GAC Aian, Microelectronics, and China Star Aerospace.