Event: on December 24, 2021, the people’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission The 6 departments, one belt, one road, Chongqing and other two local governments, issued the plan for the construction of the western financial center of Chengdu and Chongqing (hereinafter referred to as the “planning”), which built Chengyu into a western base, facing East Asia, Southeast Asia and South Asia, and building a “one belt and one road”. The western financial center of the country and region. By 2025, the western financial center will be preliminarily completed; By 2035, the position of the western financial center will be more consolidated.
We believe that the venture capital industry in Chengdu and Chongqing is expected to usher in a golden development period!
One of the main tasks of the plan is to “build a highland for the development of equity investment funds in the West.” Support the pilot innovation of private equity fund management mode, and give priority to building a private equity investment fund service platform in the western region when conditions are ripe. Encourage the establishment of private equity investment funds, especially venture capital funds, in a market-oriented manner, and guide venture capital funds and angel investors to focus on supporting start-ups and growth enterprises.
At the fundraising end, qualified asset management products are allowed to invest in venture capital funds or private equity funds. The plan points out that qualified asset management products are allowed to invest in venture capital funds or private equity funds on the premise of legal compliance, commercial voluntariness and controllable risk. Under the framework of provincial and municipal industrial development investment guidance fund, study and establish investment promotion sub fund clusters to invest in major projects to be introduced.
On the investment side, broaden the financing channels of science and innovation enterprises. The plan points out that we should strengthen the linkage between the regional equity market and science and innovation funds, explore and study the listing and trading rules suitable for science and innovation enterprises and science and technology achievement transformation enterprises, and promote the market-oriented valuation and transformation financing of science and technology achievements. Support overseas private equity funds to participate in the financing of science and innovation enterprises in Chengdu and Chongqing.
Exit end, optimize regional multi-level capital market services, and explore the feasibility of venture capital and private equity fund share transfer. The plan points out that we should vigorously promote the listing of small and medium-sized innovative enterprises in the central and western regions on the new third board, support Chongqing to carry out regional equity market system and business innovation, and simultaneously explore the docking mechanism with the new third board market. Support the equity trading platform in Chengdu and Chongqing to carry out business innovation such as registration, custody and trading varieties according to law, and study and explore the feasibility of venture capital and private equity investment fund share transfer. We should establish a one level cooperation mechanism for one western region and one belt, one road, and the other, we should study and support the foreign investors who are qualified to invest in the regional equity market.
Investment suggestions: private equity and venture capital funds are important channels for direct financing of science and innovation enterprises and an important part of building a “western financial center”. The benefits of private equity and venture capital funds in the plan involve all links of “raising, investing and withdrawing”, which reflects the strong support of policies for the venture capital industry! We recommend Sichuan Shuangma Cement Co.Ltd(000935) ( Sichuan Shuangma Cement Co.Ltd(000935) is jointly recommended by the non bank group and the building materials group).
Risk warning: the capital market fluctuates greatly; Industry competition intensifies; The policy promotion was less than expected.
