On August 27th, the Bank of China's mother fund made another move, according to the Science and Technology Innovation Board Daily.

Recently, Bank of China has been promoting the establishment of a science and technology innovation mother fund, with a total scale of 30 billion yuan. The mother fund is initiated and managed by BOC International, a subsidiary of Bank of China, and is jointly established in batches and stages with local governments and leading industries.

A banking industry insider told the Science and Technology Innovation Board Daily that this move is an exploration by Bank of China to support the improvement of patient capital supply and the independent development of national science and technology, as well as an important layout for promoting the development of technology finance. It will inject new energy into the current primary market.

Early investment, small investment, long-term investment, and investment in hard technology.

According to the Bank of China's official website, the mother fund will focus on key areas such as artificial intelligence, quantum technology, and biotechnology, guiding more market resources to invest early, invest in small projects, invest for the long term, and invest in hard technology. 'The Bank of China will take the establishment of the mother fund as an opportunity to better play the leading role of large state-owned commercial banks, and continuously provide integrated 'commercial + investment banking + cross-border', 'financing + intelligence + business' full life cycle, full chain financial services to support technological innovation and industrial transformation.'

BOC International expressed that it will continue to improve the key regional layout, deepen cooperation with science and technology innovation hubs, and continue to promote the establishment of a series of funds.

It is disclosed that the initiator and manager of the mother fund is BOC International, which was established on February 28, 2002 in Shanghai with a registered capital of 2.5 billion yuan. Based on BOC International's comprehensive service platform, it has long been committed to providing one-stop comprehensive financial services with investment banking as the main business for large central enterprises, local state-owned enterprises, private enterprises, financial institutions, and local governments.

According to the Zhizhong Data from Caishang Venture Capital Channel, BOC International has invested in 8 funds, including the Jungar Banner Clean Energy Industry Development Investment Fund (limited partnership) and the Guizhou Liangdu Second Three-Phase Poverty Alleviation Industry Fund Management Center (limited partnership), and several of the funds have been liquidated and deregistered.

There have been a total of 38 direct investment events, mainly through participating in private placements, and the frequency of transactions has gradually decreased in recent years. The projects include investments in DeLing Technology, a producer of intelligent low-voltage electrical systems, Koma Materials, a supplier of clutch facings for autos, and Time Technology, a mobile game developer.

The Science and Technology Board Daily noticed that on March 29, 2022, BOC International announced that its wholly-owned subsidiary, BOC Capital, intends to invest 0.7 billion yuan in the Cooperative Development Mother Fund for Technological Innovation. The fund's target size is also 30 billion yuan, focusing primarily on the areas of low-carbon energy, high-end equipment and advanced materials, next-generation information technology, and livelihood technology. The fund manager is BOC's controlled entity, BOC Investment's private equity fund.

Regarding the above-mentioned questions about whether the Science and Technology Board Mother Fund and the Fund in question are the same, a journalist from the Science and Technology Board Daily interviewed relevant personnel from Bank of China on the 27th, but had not received a response by the time of publication.

Capital from banking institutions has been actively involved in the recent flurry of activity.

In recent years, there have been frequent policy encouragements for commercial banks to participate in private equity investment business. As a result of these policies, the capital from banking institutions has also accelerated its exploration of Science and Technology Board Mother Funds and others.

Previously, minsheng bank's first QFLP Science and Technology Board Mother Fund, the Ningbo Minyin New Dynamic Private Equity Fund, completed its filing with a target size of 0.4 billion yuan. The fund will focus on new technology, new manufacturing, and big health fields, and will subsequently invest in a series of Science and Technology Board equity investment sub-funds from Minsheng Bank.

In July, a total of 100 billion yuan in Shanghai's three major leading industrial mother funds was announced. On the LP side, Bank of Shanghai, Shanghai Pudong Development Bank, and the Shanghai Guotou platform for the three major leading industrial mother funds signed a cooperation agreement, supporting original innovation and achievement transformation, optimizing industrial ecology, and assisting in the construction of Shanghai's science and technology innovation center.

In early August, the industrial and commercial bank of china made a move to establish the green energy private equity partnership enterprise (limited partnership) of gongrong jin tou (beijing). The fund was jointly established by icbc investment and icbc capital, with a capital contribution of approximately 7.501 billion yuan; a week later, the industrial and commercial bank of china once again established the beijing national energy gongrong qianglian equity investment fund, with an investment of approximately 100 billion yuan in new energy.

According to industry insiders, previously, in financial institution limited partner (LP), insurance capital has always ranked high among the contributions from financial institutions, while the proportion of contributions from banks and bank subsidiaries has decreased. This fund is also an exploration of the long-term funding that the market has long awaited, brought by the bank of china. Bringing the demand for social wealth and resident financial management into the private equity investment industry will also become a key measure to solve the difficulty of fundraising and mismatch of capital supply in the private equity investment market.