① The Suxin Fund became the 15th bank to officially open a public offering; ② Bank of Suzhou, the majority shareholder, is the 5th domestic listed commercial bank to obtain a public offering license; ③ foreign shareholders have extensive experience in REITs business.
Financial Services Association, April 24 (Reporter Feng Qijuan) Following the Hang Seng Qianhai Fund, after a lapse of 8 years, the 15th domestic bank department officially opened a public offering.
After being approved for establishment 1 year and 5 months, the Suxin Fund obtained the “License to Operate Securities and Futures Business” issued by the Securities Regulatory Commission on April 22, and will officially launch a public offering business. The approval for the establishment of the Suxin Fund in November 2022 indicates that the company should issue public fund products within 6 months from the date it obtains a license to operate the securities and futures business.
Prior to the establishment of the Soviet New Fund, Hang Seng Qianhai Fund officially exhibited its business in 2016. It was a public offering for the 15th bank approved for establishment in China at the time. At the time, the China-Europe Fund was also a bank in the public offering department. By the first half of 2023, Huaping Investment successfully transferred 23.3% of the shares of the China-Europe Fund held by Italy's Bank of San Paolo, and the China-Europe Fund also withdrew from the bank's public offering.
As a result, the Suxin Fund has now officially become a public offering by the 15th domestic bank department. Suxin Fund is a Sino-foreign joint venture jointly funded by Bank of Suzhou, CapitaMall Fund, a subsidiary of Singapore Temasek Group, and Suzhou Park Economic and Development Company. Bank of Suzhou also became the 5th listed commercial bank in China to obtain a public offering license.
After an open recruitment by the Bank of Suzhou, Lu Kai, the former president of Guohai Securities, joined Suxin Fund in January of this year to assume the position of general manager. He said that the Suxin Fund will closely focus on the “five major articles” and insist on achieving high-quality development through high-quality financial services. Take the customer as the center and create a rich product lineage to meet the needs of customers with different risk appetite types. Consolidate the core competitiveness of investment and research, pursue long-term investment performance, and create long-term investment returns.
Regarding the layout of the product system, some industry sources revealed that the foreign shareholder CapitaID Fund has rich real estate investment trust (REITs) business experience. In the future, Suxin Fund may make full use of its advantages to vigorously expand its public REITs business.
There are already 5 public offerings in urban commercial banks
In November 2022, the China Securities Regulatory Commission approved the establishment of the Suxin Fund, with a registered capital of 150 million yuan. Bank of Suzhou, CapitaD Fund controlled by Singapore Temasek Group, and Suzhou Park Economic Development Company will each invest 56%, 24%, and 20%. According to the relevant announcement, the establishment of the Suxin Fund will be completed within 6 months from the date of approval, the full amount of contributions will be paid, directors and supervisors will be elected, and senior management personnel will be appointed.
In February 2023, the Suxin Fund obtained a business license and was formally established. In October of that year, Bank of Suzhou, the majority shareholder, published recruitment information for Suxin Fund on its official website. According to the recruitment information, Suxin Fund will recruit a number of employees, including a total of 3 senior management positions, including general manager, deputy general manager, and marketing department director; in addition, it will also recruit several fund managers in the equity direction and fixed income direction respectively.
After 2 months of public “selection”, Lu Kai, the former president of Guohai Securities, confirmed the position of general manager of Su Xin Fund. According to public information, Lu Kai, born in April 1976, is a doctoral student. He has 16 years of experience in asset management and 4 years of securities company management experience. He has served as senior manager of CNOOC Trust's Innovation Business Headquarters, Deputy General Manager and General Manager of Trust Business Headquarters, General Manager of Shenyin Wanguo Securities Client Asset Investment Management Division, Vice President and CEO of Guohai Securities. In addition, he also served as a member of the CCIC Asset Management Business Professional Committee.
As the main sponsor of the Suxin Fund, the Bank of Suzhou can be described as sparing no effort in promoting the public offering business.
In April 2020, the Bank of Suzhou first mentioned in the “2019 Annual General Meeting of Shareholders Meeting Materials” that it wants to promote the establishment of joint venture public fund companies. The following year, the Bank of Suzhou once again stated in the “2020 Report on the Work of the Board of Directors” that it would seek to establish a public fund. After receiving approval for securities investment fund custodian qualifications in March 2022, the Bank of Suzhou deliberated and passed a bill on initiating the establishment of a public fund company at the board of directors, and then passed a bill to adjust the shareholding ratio of the proposed public fund company through review and approval.
Currently, including the Suxin Fund, a total of 15 domestic banks are public offering. According to Wind's latest data, China Merchants Fund ranks first in bank public funding with an asset management scale of 865.942 billion yuan. ICBC Credit Suisse, CCB, and BOC Schroder ranked second to fifth in that order in the “Big Five” lineage public offering, with an asset management scale of over 500 billion yuan.
Among these 15 public offerings, Bank of Ningbo's Yongying Fund is second only to BOC Schroder in terms of asset management. After 2013, urban commercial banks, including the Bank of Ningbo, began to set up public equity businesses one after another. The Bank of Beijing, the Bank of Nanjing, and the Bank of Shanghai successively set up their fund companies, China Canada Fund, Xinyuan Fund, and Bank of Shanghai.
It was also thanks to the addition of the Suxin Fund that the urban commercial bank's public offering team has been expanded to 5.
Chinese and foreign shareholders each have their own resource endowments
At the same time, Suxin Fund is also the only joint venture public fund company with a Chinese bank as the majority shareholder since 2013.
In 2023, Bank of Suzhou ranked 264th in the Global Top 1000 Banking Industry by the UK's “TheBanker” magazine. Based on the group's integrated management strategy of comprehensive financial services, the Bank of Suzhou stated that it will fully support the development of the Suxin Fund.
The Suxin Fund will also combine the characteristics of the Bank of Suzhou and its own development plans to develop close business links with the parent bank in product development, channel construction, customer development, etc., to give full play to the professional advantages of public funds in product design and investment strategies, and develop fund products that meet the needs of investors. Furthermore, the Suxin Fund will proactively serve growing, science and technology innovation enterprises, play a pivotal role, help transform and upgrade the real economy, and promote the high-quality development of various businesses.
As the third largest shareholder, Suzhou Industrial Development Company is a state-owned enterprise in Suzhou. It has rich management experience in participating financial institutions, covering various fields such as banking, securities, insurance, asset management, and guarantees, with the aim of empowering the comprehensive development of the Suxin Fund.
The foreign shareholder CapitaMall Fund is a wholly-owned subsidiary of CapitaMall Investments Group. CapitaMall Investments Group is also the world's leading real estate asset management agency controlled by Singapore's Temasek Group. As of the end of 2023, the management scale exceeded 700 billion yuan (data source: CapitaMall Investments official website). It is reported that CapitaMall Fund and CapitaMall Investment Group will actively explore public REITs business in China in the future.
The Su Xin Foundation said that under the guidance of the “Nine Rules of the New Country”, it will resolutely implement the policy orientation of political, popular, risk prevention and high-quality development, deeply grasp the rich content of high-quality capital market development, actively cultivate rational investment, value investment, and long-term investment concepts, enhance the level of compliance and internal control, professional service capabilities and core competitiveness, enrich financial products and services in the capital market, better serve innovation in new industries, new business formats, etc., and better serve residents' wealth management needs, seek development through innovation, build quality products, and empower efficiency through management. Adhering to the development concept of compliance and integrity, professionalism, prudence, refinement and ingenuity, we are contributing new strength to accelerate the construction of a safe, standardized, transparent, open, dynamic and resilient capital market and promote the development of new quality productivity and the transformation and upgrading of China's economy.