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Company News: Shenzhen Capital Group Global Srategy Press Conference, the opening ceremoney of West Fountain Parallel Fund

2017.06.30

On June 30th, Shenzhen Capital Group held an international strategy conference in Futian Shangri-La Hotel, Shenzhen. It directly met with Microsoft (China), KPCB, one of the largest US venture capital companies, and Shenzhen SASAC. The large-scale comprehensive enterprise group under the management of Shum Yip Group, along with other domestic and foreign partners, signed contracts and held the inauguration ceremony of the West Fountain Parallel Fund, announcing the full launch of an international strategy.



Ai Xuefeng, Deputy Mayor of Shenzhen, Hu Guobin, Deputy Director of the State-owned Assets Supervision and Administration Commission of Shenzhen, Harry Shum, Microsoft Global Executive Vice President and Head of Microsoft Artificial Intelligence Research Institute, Wen H. Hsieh, Partner of KPCB, USA, Lv Hua, Chairman of Shum Yip Group, Russia Anton Vasiliev, investment director of venture capital companies, Yingying Gui, senior investment consultant of the Finnish Investment Promotion Agency, SV Investment, a partner of Shenzhen Capital Group, and senior executives of investment companies More than 200 people including partners of West Fountain Parallel Fund, media guests, and all senior executives of Shenzhen Capital Group attended the conference. Wu Ting, the founder of Guest Media, hosted the meeting.


Joint efforts to accelerate the global deployment

According to the strategic partnership agreement, Shenzhen Capital and Shum Yip Group will form partnerships in developing innovation incubation centers in Silicon Valley, Boston, Seattle, and other places in the United States and introduce them back to China. The project incubation is mature. The two parties will build domestic and overseas high-tech innovation industrial parks in Shenzhen to undertake mature high-tech projects incubated overseas. In addition, the two parties will set up a high-tech innovation industry fund with a scale of RMB 10 billion in the first phase, adopting a parallel fund (domestic RMB fund and offshore USD fund) model, mainly used to invest in high-quality domestic enterprises. Invest in overseas high-end technology companies and talents after introducing high-tech industrial parks; invest in and merge overseas high-tech innovative companies, build incubation centers that incubate and cultivate overseas high-quality projects, and attract top talents from abroad.


Shenzhen Capital Group and Microsoft (China) will carry out a strategic partnership, and its subordinate Asia Research Institute will provide Shenzhen Capital Group with industry analysis and industry information in the field of artificial intelligence and big data; Shenzhen Capital Group will join the "Innovation Exchange" of Microsoft Research Asia Projects, and recommend the participation of companies invested by Shenzhen Capital Group for in-depth partnership; the two parties will also form an alliance in Microsoft accelerator project investment.



Shenzhen Capital Group and KPCB will form a partnership in terms of project channels, evaluation, recommendation, etc. KPCB will help find or recommend US projects with investment potential to Shenzhen Capital Group. Shenzhen Capital Group will help KPCB investment companies settle in China and expand the Chinese market.


Hu Guobin, Deputy Director of the State-owned Assets Supervision and Administration Commission of Shenzhen, Wen H.Hsieh, partner of KPCB in the United States, Lv Hua, Chairman of Shum Yip Group, Huang Wei, President, Zhang Yizhao, Vice President of Microsoft Research Asia, Yue Ying, President of China Merchants Bank Shenzhen Branch, United States Du Feng, head of the Asia Pacific Investment Banking Division of Bank of America and Merrill Lynch, Li Tong, CEO of Bank of China International, Ni Zewang, Chairman of Shenzhen Capital Group, Sun Dongsheng, President, Jiang Yucai, Vice President, and Li Li, Chief Partner of West Fountain Parallel Fund, took the stage to witness the signing.

The above-mentioned three parties that formed partnership with Shenzhen Capital Group, as well as Shenzhen Capital Group's overseas partners—Russian Venture Capital Corporation, which was fully funded by the Russian Federation Government, and Investment Promotion Agency of Finland, gave presentations at this press conference.




Pioneers taking the first step in China and US

The inauguration ceremony of the West Fountain Parallel Fund was also held at the press conference.
West Fountain Parallel Fund is currently the largest parallel fund established by Shenzhen Capital Group, with a total scale equivalent to RMB 4 billion and a structure of RMB 2 billion + USD 300 million. The domestic part, West Fountain China Parallel Fund, and the overseas part, West Fountain, are mainly engaged in high-tech enterprise venture capital and cross-border mergers and acquisitions.

Since the registration of the West Fountain Parallel Fund, it has made bold moves to invest in overseas projects. It has successively invested in well-known American high-tech companies such as Desktop Metal, Wave Computing, Ambiq Micro, and form partnershipd with ASR Microelectronics to acquire Marvell Technologies, a US-listed company. The communications chip department. These investment companies cover 3D printing, data stream processors, ultra-low-power radio frequency chips, mobile phone communication chips and other industries. They all have an excellent founder team and a strong technical background, and represent the future technology development direction in their respective fields. .

In terms of cross-border mergers and acquisitions, West Fountain Parallel Fund has reached partnership with a number of domestic listed companies and is planning the acquisition of overseas projects to help more listed companies expand international footprint and promote the development and growth of national enterprises. In the future, in accordance with changes in foreign exchange policies, West Fountain Parallel Fund will accelerate the promotion of cross-border M&A business in due course.

Hu Guobin, Deputy Director of Shenzhen State-owned Assets Supervision and Administration Commission, Ni Zewang, Chairman of Shenzhen Capital Group, Sun Dongsheng, Vice President, Jiang Yucai, Vice President, Lv Hua, Chairman of Shum Yip Group, Zhou Guohui, Chairman of Eternal Asia, Peng Dehong, Chairman of Qianhai Hongpei Investment, and Director of Tongxingda Technology Chang Wanfeng, Ye Zonggao, chairman of Sichuan Sanye Group, and Li Li, managing director of West Fountain Parallel Fund, jointly unveiled the Sino-US Fund.

As the pioneer of domestic Sino-foreign joint venture funds, as early as 2002, Shenzhen Capital Group jointly initiated the establishment of the Mainland’s first Sino-foreign joint venture capital fund, Sino-Singaporean Fund, in partnership with Singapore’s United Overseas Bank and other institutions. Listed on the US NASDAQ, Hong Kong Main Board and Singapore Exchange. Shenzhen Capital Group also managed the China-Israel Fund and the Japanese Yen Fund. Since 2016, it has initiated the establishment of the China-Korea Fund and the China-US Fund. At present, Shenzhen Capital Group is actively preparing to set up Sino-Russian Fund, China-Bahrain Fund, Sino-Finnish Fund, Asian Investment Silk Road Shenzhen Growth Fund, and China-Brunei Fund.

Three "internationalizations" to seize opportunities in the VC 2.0 era

The “National Ten Measures” for venture capital issued in 2016 is considered to be the country’s most comprehensive and systematic supportive policy since the start of venture capital, marking the beginning of the venture capital industry’s 2.0 era. The "National Ten Articles" of venture capital clearly states that strong domestic venture capital companies are encouraged to actively and steadily "go global" and actively share high-end technological achievements.

Seizing the opportunity of the venture capital 2.0 era and the favorable opportunity of the “Belt and Road” development, through “going out” to become stronger, better and bigger, investing in outstanding enterprises in cutting-edge technology on a global scale, and participating in global competition and partnership are the strategic choices of Shenzhen Capital Group to enhance its capability to serve investment enterprises and promote socio-economic development.


At the press conference, Ni Zewang, chairman of Shenzhen Capital Group, said in his speech that local venture capital is bound to take responsibility for participating in international competition and partnership to improve its own venture capital and service levels. As one of the local venture capital institutions with the capabilities to go global at this stage, Shenzhen Capital Group must take the initiative to undertake such a historical mission. Shenzhen Capital Group's own development has also reached the point of accelerating the pace of internationalization.

Ni Zewang said that Shenzhen Capital Group must first realize the internationalization of fundraising. In the future, it is planned to establish overseas institutions such as American companies and European companies. In conjunction with the major initiative of the "Belt and Road Initiative", it will also strengthen partnership with central enterprises going overseas and establish overseas joint ventures in key participating countries and regions. Recently, Shenzhen Capital Group is actively exploring international financing models. The company will issue US dollar bonds in Hong Kong to further raise larger US dollar funds overseas.

Secondly, Shenzhen Capital Group must gradually realize the internationalization of investment. Over the past 18 years, Shenzhen Capital Group has invested a total of 745 projects, of which RMB investment accounted for 93%; the accumulated investment was 28.8 billion yuan, of which RMB investment accounted for 94%. In the future, Shenzhen Capital Group will gradually increase the proportion of foreign currency investment and strive to reach about 20% of foreign currency investment by the end of the "13th Five-Year Plan" period.

Third, Shenzhen Capital Group wants to build an international professional team. One third of the current investment team of Shenzhen Capital Group has overseas study or work experience. In the future, the company will continue to increase its investment in human resources, through systematic training, targeted introduction and other measures, to enhance the company's talents' internationalization and professional knowledge level to meet the needs of international strategic development.

International competition and partnership to promote a win-win situation for multiple parties

With the industrial revolution and technological wave sweeping the world, worldwide competition and collaboration have become the norm. Deeply participating in the global industrial evolution and economic development process, participating in international competition, and deepening international partnership is the only way for enterprises to seek long-term and stable development.




At this press conference, Shenzhen Deputy Mayor Ai Xuefeng and Shenzhen SASAC Deputy Director Hu Guobin delivered speeches expressing their support and expectation for venture capital institutions and Shenzhen-owned state-owned enterprises to "go global" and actively participate in international competition and partnership.

Vice Mayor Ai Xuefeng said that Shenzhen has become an important venture capital hub in the country, and venture capital institutions shoulder the important mission of bringing in high-quality overseas project resources, and shoulder the important task of promoting Shenzhen's economy to maintain medium-to-high-speed growth and to move to a mid-to-high-end level. The Shenzhen Government will unswervingly support venture capital institutions to become bigger and stronger and go global. The launch of Shenzhen Capital Group's internationalization strategy is in line with the international development context of the world economy. It is the correct move to conform to the development trend of the domestic venture capital industry and an important practice to support Shenzhen to become the capitol of venture capital in China.


Deputy Director Hu Guobin said that Shenzhen Capital Group has been cultivating voyages to the world, which not only demonstrates the corporate ambition of forge ahead and bravely rise to the forefront, but also reflects the responsibility and responsibility of Shenzhen's state-owned state-owned enterprises to serve the overall situation. Shenzhen Capital Group is an important supporting enterprise for Shenzhen's state-owned assets to implement innovation-driven strategies and fund group strategies to promote the global development of state-owned assets and state-owned enterprises. It is believed that Shenzhen Capital Group will continue to ride the waves in the process of internationalization and gradually become one of the world's leading financial institutions Column.

Harry Shum, Executive Vice President of Microsoft Global and Head of Microsoft Artificial Intelligence Research Institute, delivered a keynote speech entitled "The Prospects of Artificial Intelligence". Du Feng, head of the Asia Pacific Investment Banking Department of Bank of America Merrill Lynch, delivered a keynote speech titled "Cross-border Investment and M&A Opportunities and Risks".

At the end of the meeting, Sun Dongsheng, President of Shenzhen Capital Group, gave a speech of thanks. He said that in today's era, industry intensive, technology and funding are highly integrated, and resource integration and competitive advantage cultivation require an international perspective. Shenzhen Capital Group has made some international explorations in its development process, but it has not risen to a strategic height. The holding of this conference marked that Shenzhen Capital Group fully embarked on its internationalization strategy. On behalf of Shenzhen Capital Group, he thanked all sectors for their support and looked forward to developing deeper and more comprehensive international business partnerships in the future, complementing each other's strengths and achieving a win-win scenario.