① The third phase of the National Big Fund was recently established, and six major state-owned banks, including China Agricultural Construction Bank and the Postbank, participated in the investment. The six major state-owned banks are expected to invest a total of 114 billion yuan, accounting for about 33.14% of the shares. ② After the implementation of the new “Commercial Bank Capital Management Measures”, the risk weight of shares specially approved by the State Council was lowered due to policy reasons, which also helped banks to participate in investing in large national funds.
Financial Services Association, May 27 (Reporter Zou Juntao) For the first time, the National Big Fund welcomed six major state-owned banks.
According to Tianyan Research, the third phase of the National Integrated Circuit Industry Investment Fund (National Integrated Circuit Industry Investment Fund Phase III Co., Ltd.) was formally established on May 24, with a registered capital of RMB 344 billion, which is higher than the sum of Phase I and Phase II.
A Financial Services Association reporter noticed that six major banks, including Industrial and Commercial Bank, Agricultural Bank, Construction Bank, Bank of China, Bank of Communications, and Postbank, are now collectively on the list of shareholders of the third phase of the National Capital Fund. The six major banks have invested 114 billion yuan in total, accounting for nearly one-third of their total shareholding. After the market closed on the 27th, the six major banks announced the above investment and shareholding matters one after another.
It is worth noting that compared to the previous two major national funds, this is also the first time that a commercial bank has participated in a major national fund.
On the afternoon of May 27, an interviewed industry insider believed that the participation of large banks in large national funds broadened the sources of fund raising, while also expanding financial services for banks and enhancing their ability to develop new service strategies and innovate industries.
Furthermore, a brokerage banking analyst, who did not wish to be named, pointed out to the Finance Association reporter that after the implementation of the new “Commercial Bank Capital Management Measures”, the risk weight of shares specially approved by the State Council was lowered for policy reasons, which also helped banks to participate in investing in large national funds.
The six major banks collectively unveiled the third phase of the National Big Fund, with a total investment of 114 billion yuan
According to shareholder information, the third phase of the National Capital Fund was jointly funded by 19 shareholders, including the Ministry of Finance, Guokai Finance Co., Ltd., Shanghai Guosheng (Group) Co., Ltd., and six major state-owned banks. Among them, the Ministry of Finance is the largest shareholder, holding 17.4419% of the shares, followed by CDF holding 10.4651% of the shares.
The four major banks of China Construction Industry and Agriculture are expected to invest 21.5 billion yuan each, holding 6.25% of the shares, and are the fourth largest shareholders in the third phase of the National Big Fund; the Bank of Communications is expected to invest 20 billion yuan and hold 5.814% of the shares; the Postbank is expected to invest relatively little, investing 8 billion yuan and holding 2.3256% of the shares. According to statistics, the six major state-owned banks are expected to jointly invest 114 billion yuan, accounting for an overall shareholding ratio of about 33.14%.
On the evening of May 27, as of the press release, the Industrial and Commercial Bank, the Bank of China, the Agricultural Bank, the China Construction Bank, the Postbank, and the Bank of Communications have all issued foreign investment announcements, stating that the above investments have been reviewed and approved by the Bank's board of directors, and there is no need to submit them to the Bank's shareholders' meeting for review. The investment has been approved by the China Financial Supervisory Authority. Actual payment is expected within 10 years from the date the fund is registered and established.
Furthermore, the banks mentioned above all stated in their announcements that the current investment was funded by the Bank's own funds. This investment is an important layout made by the Bank in conjunction with the country's major decisions on the development of the integrated circuit industry, the Bank's development strategy and business resources. It is a strategic choice for the Bank to serve the real economy and promote sustainable economic and social development. It is another major step taken by the Bank to carry out the responsibility of major banks, and is of great significance in promoting the Bank's financial business development.
According to information, the business scope of the third phase of the National Big Fund includes private equity investment fund management, venture capital fund management services, the use of private equity funds to engage in activities such as equity investment, investment management, asset management, etc., and enterprise management consulting. The fund aims to guide social capital to increase multi-channel financing support for the integrated circuit industry, focusing on investing in the entire integrated circuit industry chain.
This is the first time that a commercial bank is participating in the investment. The industry believes it may be related to the new capital regulations
According to the official website of the Ministry of Industry and Information Technology, the establishment of a large fund is an important measure to implement the “National Integrated Circuit Industry Development Promotion Outline”. It is also an active exploration of adapting to the characteristics of industries with high investment risks in the integrated circuit industry, breaking financing bottlenecks in the integrated circuit industry, and innovating industrial investment institutional mechanisms.
Big funds take the form of a corporate structure, with Guokai Finance, China Tobacco, Yizhuang SDIC, China Mobile, Shanghai Guosheng, China Telecom, Ziguang Communications, and Huaxin Investment as sponsors to attract large enterprises, financial institutions, and social capital.
According to Tianyan Research, in September 2014, the first phase of the National Big Fund was established with a registered capital of 98.72 billion yuan; in October 2019, the second phase of the National Big Fund was established, with a registered capital of 204.15 billion yuan.
A Financial Services Association reporter noticed that there were no commercial banks involved in the first two installments of the National Big Fund. This time, the third phase of the National Big Fund appeared as a commercial bank for the first time. In response, some industry insiders interviewed believe that this may be related to the implementation of the new capital regulations.
According to information, in November 2023, the State Administration of Financial Supervision and Administration announced the “Capital Management Measures for Commercial Banks”, which will take effect on January 1, 2024. The new capital regulations comprehensively revise risk-weighted asset measurement rules. Among them, the risk weight of “equity specially approved by the State Council due to policy reasons” was lowered from 400% to 250%. Industry insiders believe that large national funds should fall under the above types of equity investment and meet the requirements of regulation and national industrial strategy.