October 21 witnessed the closing ceremony of “2016 ZGC innovation and entrepreneurship season” and the launching ceremony of ZGC Merge & Acquisition Parent Fund (“M&A Fund”) . 

M&A Fund is designed to have a total amount of 30 billion yuan, with the first phase of 10 billion yuan (have actually subscribed 12.25 billion yuan). Through sub-funds, M&A Fund is expected to leverage 150 to 200 billion yuan to invest in strategic emerging industries, technological innovation and industrial restructuring. It is also the largest industrial acquisition parent fund in China.

M&A Fund is jointly initiated and established by ZGC Dahe Capital Investment Management Center, Haidian District Industry Merger and Acquisition Guiding Fund, Haidian District State-owned Assets Investment and Management co., Ltd., Tsinghua Holdings and ZGC Development Group. Participating enterprises are listed companies with a market value of more than 10 billion yuan, unlisted enterprises with a valuation of more than 10 billion or a profit of more than 100 million yuan, and enterprises with obvious leading potential and in line with Haidian industrial development direction.

It is reported that a number of A-share companies have participated in the first-phase fundraising (12.25 billion yuan) of M&A Fund as limited partners, including Yonyou Network, Teamsun, Beijing Sanju Environmental Protection & New Materials co.,Ltd., Beijing Liad Investment co.,Ltd. (a wholly-owned subsidiary of Liad), LANXUM, Shenzhou High-speed Rail, Spiral Information, Landocean Group, Xi’an Digital Industry co., Ltd. (an affiliate of Digital China), with each subscribed 150 million yuan. 

M&A Fund will set up sub-funds according to the M&A needs of listed companies. Through the way of “Sci-tech innovation + Financial innovation + Mode innovation”, M&A Fund will engage in strategic cooperation with other M&A parent funds with respect to industrial resource docking and capital channel connection. They will jointly facilitate the flow of capital and resources to sci-tech industries and the real economy, encourage enterprises to pursue more strategic M&A, help companies to become stronger and bigger, better promoting industrial cluster and industrial structure adjustment. It will eventually achieve an M&A size of 150-200 billion yuan.  

In the future, leading technology enterprises in Zhongguancun supported by M&A Fund will continue to lead China’s industrial upgrading under the dual role of technological innovation and capital promotion and become an international enterprise group serving the world. M&A Fund will become an important internationalization platform for ZGC enterprises. It will fully support ZGC high-tech enterprises to “go abroad” and pool global high-end innovation resources, to build Haidian District into a global open innovation highland.  

Beijing Energy Holding co., Ltd., ZGC Development Group, Tsinghua Holdings, Shanghai Pudong Development Bank, Bank of Beijing, Postal Savings Bank, Bank of Nanjing and others have signed agreements with the fund management company on the site. The contracting parties will engage in strategic coordination with M&A Fund in many aspects like industrial resource docking and capital channel connection, so as to jointly promote the flow of capital and resources to sci-tech industries and real economy. In particular, the strategic participation of financial institutions, such as Shanghai Pudong Development Bank, Bank of Beijing, Postal Savings Bank, Bank of Nanjing, has injected new content and vitality into the Tech-fin innovation, and also enabled them to play a greater role in the development of enterprises.