Shanghai International Group: Create a science and technology investment ecosystem to promote the construction of science and technology innovation centers
This year marks the tenth anniversary of the construction of Shanghai International Science and Technology Innovation Center.
Over the past ten years, Shanghai has adhered to the two-wheel drive of scientific and technological innovation and institutional innovation in accordance with the central government's deployment, achieving a substantial increase in the comprehensive strength of science and technology and the overall efficiency of innovation. The Shanghai government work report at the beginning of the year proposed that we should speed up the establishment of scientific and technological innovation guidance funds to guide long-term capital and patient capital to invest early, invest in small and hard technologies.
Adhering to the original intention and mission of serving the reform and opening up and serving the overall development of Shanghai, Shanghai International Group is forge ahead, bold in innovation and marching forward in supporting the construction of a science and technology innovation center.
In recent years, Shanghai International Group has actively exerted its function as a financial holding platform, fully leveraged its comprehensive financial advantages and professional operational capabilities in investment and asset management, continuously improved its research capabilities and resource allocation capabilities in the field of science and technology innovation, and invested in independent equity and industrial funds through independent equity investments and industrial fund investments. and other market-oriented methods, actively deploy leading enterprises and leading projects, work with social capital to focus on Shanghai, focus on strategic emerging industries, and jointly assist the construction of Shanghai as an international science and technology innovation center.
As a municipal state-owned capital investment operation company and financial holding platform, Shanghai International Group continues to strengthen its professional capabilities, exerts a leading demonstration effect of direct equity investment, and its role in supporting the construction of science and technology innovation centers through equity investment is gradually becoming more prominent and has achieved remarkable results. .
——The investment direction focuses on key areas in the construction of Shanghai Science and Technology Innovation Center. Since 2020, Shanghai International Group has invested more than 40 billion yuan in systemic equity investments. In addition to its main financial business, it has focused on scientific and technological innovation industries such as financial technology, integrated circuits, biomedicine, and artificial intelligence.
Focusing on the Shanghai integrated circuit industry, it has invested in advantageous enterprises in all aspects of the industrial chain from materials and equipment to packaging and testing; focusing on the three major sub-sectors of innovative drugs, medical devices and CXO, it has continuously improved the investment level of the biomedical industry; in artificial intelligence In the intelligent industry, we focus on platform-based layout of vision, reasoning and other core algorithms, and carry out investments in subdivided areas.
In addition, focusing on Shanghai's modern industrial system, Shanghai International Group focuses on key enterprises in the fields of smart cars and high-end equipment to provide support for their industrial transformation and upgrading.
——Investment business focuses on enhancing strategy and visibility. Shanghai International Group continuously improves its investment capabilities by formulating and dynamically optimizing active investment strategies, strengthening the overall guidance of the investment business of various entities in the system. The average investment amount of a single project has increased year by year, and the number of leading investment projects in the past three years has reached 38. Increase investment in a number of chain-owner enterprises such as Huahong Company, SenseTime Technology, Zhaoxin Electronics, and China Electronics Jinxin, and play a role in promoting the development of Shanghai's strategic emerging industries and leading industries.
At the same time, Shanghai International Group also extends investment to the upstream and downstream of the science and technology innovation industry, actively explores "early, small, hard" companies and growth-stage companies with development potential and growth value, and further expands the depth and breadth of science and technology innovation investment.
——Investment projects are firmly rooted in Shanghai and serve Shanghai. Since 2020, Shanghai's local projects have invested nearly 34 billion yuan in equity investments in the group's system, accounting for more than 80%, reflecting Shanghai International Group's firm commitment to Shanghai's technological innovation and the development of strategic emerging industries.
Building an industrial fund group, continuously enhancing the new potential of the cluster, and building a unique industrial fund group ecosystem and innovative investment ecosystem are key measures for Shanghai International Group to support the construction of Shanghai's science and technology innovation center.
On April 25, 2024, Shanghai International Group took a new step in supporting the construction of Shanghai International Science and Technology Innovation Center.
At the "Gathering Strength in Science and Technology Innovation, Relaying the Future - Shanghai S Fund Alliance 2024 Annual Forum" held in Songjiang that day, the 10 billion yuan Science and Technology Innovation S Fund was officially launched. The S Fund has important value in relaying capital and assisting scientific and technological innovation. It is conducive to forming a capital relay mechanism for scientific and technological innovation investment, promoting the smooth circulation of financial and industrial capital, and assisting the continuous improvement of Shanghai's scientific and technological innovation financial ecological system.
In May last year, Shanghai International Group took the lead in setting up an S fund with a scale of 1.5 billion yuan - Shanghai Science and Technology Relay Phase I Venture Capital Partnership. This is also the first venture capital S fund in Shanghai's state-owned assets system. Three transactions have been completed so far, with a turnover of 300 million yuan.
Speaking of S Fund, we have to mention the manager behind it - Shanghai Science and Technology Innovation Center Equity Investment Fund Management Co., Ltd., which is led by Shanghai International Group and includes Lianhe Sheng Group, SIPG, Guotai Junan, Shanghai Trust, Zhangjiang Hi-Tech, etc. A cornerstone investor, a market-oriented fund of funds launched in 2017 with a target scale of 30 billion yuan and a current management scale of over 14 billion yuan. "The core mission of the Shanghai Science and Technology Innovation Fund, led by Shanghai International Group, is to reach the best early-stage projects and cutting-edge technologies in the country through market-oriented layout and huge sub-fund tentacles, so as to form a venture capital ecosystem. From the ecosystem We will explore, develop, and cultivate projects and technologies related to the construction of Shanghai Science and Technology Innovation Center, thereby helping Shanghai’s three leading industries and five future industries to carry out forward-looking layout and strengthen links,” said Liu Xinyi, President of Shanghai International Group.
As a science and technology innovation fund of funds with a state-owned background, Shanghai Science and Technology Innovation Fund has become an important tool to promote the joint development of the construction of Shanghai's financial center and science and technology innovation center. By actively exploring the sustainable development of market-oriented, professional and ecological fund of funds, path, committed to building a first-class market-oriented fund of funds with high strategic fit, large value contribution, deep integration of industry and finance, strong scientific and technological innovation performance, and global influence, in order to enhance Shanghai's scientific and technological innovation sourcing capabilities and serve Shanghai's scientific and technological innovation. Actively contribute to the construction of innovation centers.
Shanghai Science and Technology Innovation Fund adheres to strategic guidance, relies on the advantages and amplification effect of the parent fund platform, and brings together various types of capital to support scientific and technological innovation, especially giving full play to the power of state-owned capital and long-term capital. Using capital as a link, we will create a platform for state-owned assets and state-owned enterprises to connect and serve scientific and technological innovation strategies, so as to better implement national strategies and major tasks of Shanghai.
Shanghai Science and Technology Innovation Fund insists on leveraging the ecological advantages of parent funds and continuously enriches its strategies and product lines based on the characteristics and laws of technological innovation and the development of the venture capital industry. Actively explore new paths for a virtuous cycle of fundraising, investment, management and withdrawal, and jointly initiate the establishment of a national S Fund Alliance with the Shanghai Stock Exchange Center to promote the serialized development of S funds and support the field of venture capital funds in accelerating the circulation of capital.
The Shanghai Science and Technology Innovation Fund adheres to a broad layout and a combination of attraction and extensive contact with the most leading science and technology companies in the market and with the most investment value across the country, helping Shanghai to discover, target and introduce target companies in advance, combined with the development direction of key industries in various districts of Shanghai and The investment promotion policy actively guides the layout of leading foreign projects in Shanghai.
Also this year, Shanghai International Group, Pudong Venture Capital Group, Zhangjiang Hi-Tech, and Shanghai Science and Technology Innovation Fund initiated the establishment of an early-stage hard technology fund. This is the first direct investment fund within Shanghai’s state-owned assets system that is linked to urban areas and focuses on “investing early, small, and hard in technology.” The target size is 1 billion yuan, and the initial scale is 166 million yuan.
Obviously, the early stage hard technology funds unveiled this time are the latest answers submitted by the Shanghai state-owned assets system to implement the city’s “Several Measures to Further Promote the High-Quality Development of Shanghai’s Equity Investment Industry.”
More importantly, Shanghai International Group has always had a profound presence in the field of science and technology innovation and strategic emerging industries. Under the guidance and support of Shanghai International Group, Shanghai Science and Technology Innovation Fund has formed a product matrix covering parent funds, direct investment funds, early-stage hard technology funds, and S funds to comprehensively and systematically assist the construction of Shanghai Science and Technology Innovation Center. By strengthening the step-by-step relay of product portfolios in the investment stage and the synergy in investment strategies, we can better provide industrial synergy and resource docking for science and technology innovation enterprises at different stages of development.
It is worth mentioning that as one of the earliest enterprise groups in Shanghai’s state-owned assets system to initiate the establishment of industrial funds, Shanghai International Group began to get involved in the industrial fund business as early as 2009 and has accumulated rich advantages and experience in industrial fund operations. Focusing on major strategies such as the construction of Shanghai's international financial center, the construction of science and technology innovation center, the integrated development of the Yangtze River Delta, the pilot cross-border investment in RMB, and the development of modern service industries, we independently initiated and established five major strategies: Sailing, Kechuang, Gimpu, Guofang, and Guohe. An industrial fund management company, its current cumulative management scale exceeds 140 billion yuan, and its fund investment return rate exceeds the national industry average. Shanghai International Group was rated as the TOP10 Best Institutional Investors in China in Financing China in 2021. Fund management companies such as Gimpo, Kechuang, and Guofang have won authoritative awards such as China Venture Capital and Zero2IPO for many consecutive years. They are ranked among the "TOP50 Private Equity Investment Institutions in China" etc. High on the list.
The five major industrial fund management companies each have their own strengths. In addition to the fast-growing Shanghai Science and Technology Innovation Fund, the Yangtze River Delta Synergetic Advantage Industry Fund managed by Shanghai Guofang Fund of Funds Equity Investment Management Co., Ltd. has also attracted attention from all parties. In 2018, in response to the integrated development of the Yangtze River Delta becoming a national strategy, Shanghai International Group joined forces with major state-owned enterprises, financial institutions and social capital in Jiangsu, Zhejiang, Shanghai and Anhui provinces to jointly initiate the establishment of the Yangtze River Delta Fund to focus on the needs of scientific and technological innovation enterprises and continue to Export financial energy and use investment and services to promote the Yangtze River Delta region to accelerate the formation of an internationally competitive advantageous industrial chain.
The first-phase fund size is 7.2 billion yuan, and all investments have been completed so far. In 2022, Shanghai International Group organized and initiated the establishment of the second phase of the Yangtze River Delta Fund, with the first contract size of 7.1 billion yuan. On February 21 last year, the Yangtze River Delta Fund Phase II was officially unveiled. The second phase of the Yangtze River Delta Fund continues to focus on Shanghai's three leading industrial areas of integrated circuits, biomedicine, and artificial intelligence, supporting Pudong to better play its leading role in the integrated development of the Yangtze River Delta, and assisting core enterprises in the industrial chain to create internationally advanced technologies. capabilities and industrial systems, drive the implementation of innovative industrial supporting facilities and improve scale levels, and support the Yangtze River Delta industrial clusters to continuously enhance their competitive advantages.
It can be said that for more than five years, the Yangtze River Delta Fund has insisted on focusing on "hard technology", continuously promoted industrial agglomeration and deep integration of industrial chains, promoted the joint development of scientific and technological innovation and improved international competitiveness, and has become a symbol of serving national strategies within Shanghai's state-owned assets system. Sexual results.
Shanghai Financial State-owned Assets' continuous exploration in promoting the linkage between Shanghai's international financial center and science and technology innovation center is the mission and responsibility of Shanghai State-owned Assets, and it is also Shanghai's unique advantage.
Based on serving the country and Shanghai's major strategies, Shanghai International Group, together with Bank of Communications, Shanghai Pudong Development Bank, China Pacific Insurance, Guotai Junan Securities, Haitong Securities and other units, initiated the Shanghai Fintech Industry Alliance at the end of October 2019, and on May 17, 2020 Officially declared established. In the past four years, the alliance has actively served the country and Shanghai's major strategies, focused on leveraging Shanghai's advantages and characteristics, and focused on the construction of financial technology innovation carriers, and has achieved remarkable results.
——Comprehensive services for financial technology regulatory innovation. Since 2020, the Alliance has played an active role in the People's Bank of China's "Shanghai Fintech Innovation Supervision Tools Innovative Application", assisting regulatory authorities in completing the collection, review, demonstration, publicity and other related work of five batches of 22 innovative application projects. In 2021, the Alliance will undertake the "Capital Market Fintech Innovation Pilot" work of the China Securities Regulatory Commission and encourage various institutions in Shanghai to participate in the pilot. The first batch of pilot projects totals 26, ranking first in the number of pilot cities nationwide, providing a basis for regulatory innovation and industry practice. Accumulate Shanghai experience and Shanghai wisdom.
——Continuously optimize the financial technology ecosystem. The alliance carries out strategic cooperation with national think tanks or management institutions such as the China Academy of Information and Communications Technology and the National Internet Emergency Center to establish key financial technology laboratories in key areas. Encourage leading institutions in banking, insurance, securities and other industries to jointly set up professional committees for data industrialization, smart finance, intelligent operation and maintenance, etc., and at the same time develop a number of innovative technologies from artificial intelligence, big data, privacy computing, blockchain and other directions. Enterprises join the Innovation Supervision Joint Laboratory to carry out joint research, co-creation and joint research with financial institutions around the needs of application scenarios, providing a collaborative platform for fintech users, developers and participants to promote various entities in the fintech ecosystem. Create a chemical reaction in the circle and cultivate a number of financial technology innovation projects that are highly innovative, widely applicable, and demonstrative.
——Continue to make efforts to build financial technology carrying areas. The alliance relies on the physical carrier "Shanghai International Fintech Innovation Center" to actively promote the construction of Shanghai Fintech Industry Cluster. The innovation center has now formed the basic layout of a "functional platform industry innovation base". The "Innovation Supervision Joint Laboratory" in the Innovation Center aims to promote the deep integration of cutting-edge technology and financial scenarios, aiming to open up the "last mile" of financial technology innovation collaboration. It has developed more than a hundred financial institutions and innovation institutions of various types. Technology companies have settled in, continue to carry out technology and scenario docking, promote joint research on key topics, and form a financial application case library and product library.
——Officially launched a financial technology talent training training base. In order to create a first-class cultivation and innovation platform for fintech talents, the alliance officially launched the "Shanghai Fintech Talent Cultivation Training Base" in December 2022. At present, the alliance has initially established a talent training plan and curriculum system for junior, intermediate and senior levels in response to the needs of leading financial institutions. On this basis, it will be promoted and replicated to co-constructed units of talent bases in the future, and strive to form a Financial technology talent training standards for the financial industry.
——Strengthen financial technology cooperation and exchanges. The alliance has held five consecutive "Shanghai Fintech International Forum" in Shanghai, and has successively carried out cooperation and exchanges with leading fintech cities such as London, Singapore, and Hong Kong. From 2021, it will combine the forum with exhibitions and set up an offline permanent exhibition hall of the alliance. , adding online cloud exhibition functions through digital human technology to create a multi-dimensional external display window throughout the year. The Alliance has compiled and released the "Shanghai Fintech Development White Paper" for four consecutive years, systematically displaying the overall development of Shanghai's Fintech; in 2023, the Alliance released the Global Fintech Center Development Index, which effectively reflects the overall level of Shanghai's Fintech development and its global status.
In the next step, the alliance will continue to play its role in the construction of industrial ecology, gather together to promote the fintech industry to become bigger and stronger, support the undertaking of supporting functions and services related to fintech innovation supervision, help build Shanghai’s fintech talent highland, and cooperate with various financial institutions and Technology companies join hands to better support the construction of Shanghai's financial technology center.
For Shanghai International Group, it has always been its mission to assist in the construction of Shanghai Science and Technology Innovation Center, and it will make efforts from four aspects in the future -
The first is to further strengthen strategic guidance and establish the strategic goal of in-depth integration of financial capital and scientific and technological innovation elements. Firmly grasp the functional positioning of state-owned capital investment and operating companies, give full play to the core function of "financial holding" of international groups, use the advantages of comprehensive financial services, guide municipal financial institutions to strengthen collaboration and resource integration, and focus on "hard technology" and "deep technology" ", strengthen the connection between scientific and technological elements and financial capital, and actively serve the construction of Shanghai's modern industrial system.
The second is to further leverage the role of industrial funds in allocating market resources and promote the connection between technological elements and financial capital. Continue to promote the raising of key funds such as the Shanghai Science and Technology Innovation Phase III Fund of Funds and Industrial Chain Direct Investment Funds, and improve the fund product matrix with the mission of serving strategic tasks and featuring market-oriented operations, closely linked to integrated circuits, biomedicine, artificial intelligence, Digital economy and other key industrial chains and mid-to-high-end links of the value chain will give full play to the advantages of "direct investment by funds of funds" to promote the linkage between group direct investment and industrial fund investment, guide and drive more social capital to support the high-quality development of Shanghai's leading industries and key industries , to improve the service level of Shanghai Science and Technology Innovation Center.
The third is to base on serving Shanghai’s major strategies, cultivate and support the development of a group of high-quality enterprises that represent Shanghai’s strategic emerging industries and scientific and technological innovation capabilities. Continue to improve the investment ecosystem focusing on finance and financial technology, information innovation industry, digital economy, biomedicine, green and low-carbon and other fields. Based on the group’s investment strategy and deployed node enterprises, we will continue to strengthen our focus on high-quality scientific and technological innovation in Shanghai. The strategic configuration of enterprises will strive to incubate and cultivate a number of leading technology companies and unicorn companies with core technical capabilities, and build a hard technology investment ecosystem that gathers key node companies in the industrial chain.
Strengthen collaboration with Shanghai State-owned Industrial Groups and state-controlled listed companies, arrange incremental investments around key links in the industrial chain, and support the optimization and upgrading of the industrial structure of listed companies. Taking Shanghai state-controlled listed companies as a carrier, market value management tools such as capital support, mergers and acquisitions and restructuring, asset injection or divestiture, privatization, and debt restructuring are effectively used to promote the value enhancement of listed companies.
The fourth is to build a diversified and multi-level science and technology innovation financial organization system to better leverage the linkage advantages of science and technology innovation centers and financial centers. Relying on the existing industrial fund groups and invested projects, we will strive to create a more systematic and complete scientific and technological innovation financial ecological service system. Give full play to the advantages of the parent fund platform, strengthen post-investment management empowerment, do a good job in main business synergy and resource docking, further amplify the leading and clustering radiation effects of financial state-owned assets, and enhance the development capabilities of state-owned capital financial services for scientific and technological innovation entities. Actively give play to the synergistic and driving role of the financial technology industry alliance, improve the "industry-university-research-application" ecosystem, and accelerate the transformation and application of scientific and technological achievements.
Yu Beihua, Secretary of the Party Committee and Chairman of Shanghai International Group, said that Shanghai International Group will closely focus on the national strategy and the construction of Shanghai's "Five Centers", be brave in innovation, forge ahead, adhere to a market-oriented and professional approach, and further support the Shanghai Science and Technology Innovation Center Construction and development of strategic emerging industries. Give full play to professional advantages such as industrial funds and financial investment, promote the in-depth integration of the industrial chain, innovation chain, and capital chain, strive to improve science and technology investment and comprehensive financial service capabilities, and make new and greater contributions to the construction of Shanghai Science and Technology Innovation Center.
