According to the Star Daily on January 6 (Reporter Yu Shiqi), the first S Fund in Anhui Province - the Hefei Co-Creation Relay Fund has recently reached cooperation with Shanghai Shensi and Kohler Capital, completing two investment Business deployments.

According to the Star Daily reporter, the Hefei Co-Creation Relay Fund was established in April 2024 under the overall coordination of the Hefei State-owned Assets Supervision and Administration Commission. It was jointly initiated by Xingtai Capital, a subsidiary of the Hefei municipal financial holding platform, together with Hefei Baida, Hefei Urban Construction Development, Anhui Public Trading Group, Hefei Passenger Transport, and Hefei Rail Transit and other state-owned enterprises, with a fund size of 2.8 billion yuan. It is the first S Fund in Anhui Province and also the first state-owned S Fund in Central China.

The management party, Xingtai Capital, stated that this cooperation with Shanghai Shensi and Kohler Capital marks the Fund's full-scale launch of investment Operation, which will adopt various operational models such as acquiring fund shares, jointly establishing secondary S trading funds, and direct investments.

Currently, there are no publicly disclosed specific details regarding the cooperation between the Hefei Co-Creation Relay Fund and Kohler Capital. However, its collaboration with Shanghai Shensi, as noted by the Star Daily reporter, is a Trade of one S Fund subscribing to another S Fund's shares.

Public information indicates that Shanghai Shensi is a management platform for S Funds focused on strategic XINXINGCHANYE, jointly initiated by Shengshi Investment and Shanghai Industrial Group. It is one of the earliest Institutions engaged in S Fund business in China.

According to data from the Financial Alliance Venture Capital, the Hefei Co-Creation Relay Fund has subscribed 5 million yuan, holding 0.56% of the shares in the Suzhou Shanghai Shensi Garden Feng Equity Fund. The Suzhou Shanghai Shensi Garden Feng Equity Fund is the second phase S Fund of Shanghai Shensi, with a scale of 0.889 billion yuan, introducing the Suzhou Industrial Park Industrial Investment Fund as a strategic LP, and it is the first S Fund established in the Suzhou Industrial Park.

Currently, the Suzhou Shanghai Shensi Garden Feng Equity Fund has invested in 9 funds managed by well-known Institutions such as Zhongding Capital, Yuansheng Venture Capital, and Dacheng Caizhi, penetrating to a base of 283 companies, including 16 listed companies and 30 companies intending to go public.

Practitioners familiar with S Fund trading told the reporter from the Star Daily that the Hefei Co-Creation Relay Fund can enjoy investment rights through purchasing shares of the Suzhou Shangshi Shengshiyuanfeng Equity Fund. "This is also the reason why institutions with state-owned backgrounds are gradually willing to participate in S Fund trading, as the underlying assets and positions of S Funds are very clear," he stated.

The successful trade between two S Funds has led another market-oriented investor to believe that the liquidity of the S Fund market has further opened up, with more participants willing to join. According to her observations, from last year to now, with encouragement and promotion from policy, state-owned capital is continuously entering the S Fund market. Now that trades are taking place, it indicates that there are executable operational strategies, and state-owned system S Funds are expected to take more actions this year.

Previously, Xu Jun, Secretary of the Party Committee and Chairman of the Shanghai Equity Trading Center, stated: "According to our observations, among the buyers and sellers of S trades, participants with state-owned backgrounds account for a large majority, reaching over 80%."

Li Yan, General Manager of the Shangshi Shengshi S Fund, mentioned at an event that the trading model of the Shangshi Shengshi S Fund has evolved from the previously more conventional pure LP share transfer transactions to more diversified and complicated trades, including cooperation with GPs for successor funds, restructuring funds, and structured funds in collaboration with industry parties. S trades need to balance the interests of all parties, and a reasonable transaction structure design can better achieve a win-win situation for all.