10 billion yuan, Sinomach makes a move in Hangzhou

Jiema LP of the investment community learned that recently, the Guoxin Venture Capital Fund (Hangzhou) Partnership (Limited Partnership), with a scale of 10 billion yuan and led by China Reform Holdings Corporation Limited, was officially established in Hangzhou. The fund has a term of 15 years and mainly invests in seed - stage, startup - stage, and growth - stage technology innovation enterprises with strong technological capabilities.

The establishment of the fund in Hangzhou is another example of the continuous deepening of cooperation between central enterprises and local governments by China Reform Holdings Corporation Limited and Hangzhou.

15 - year term, Guoxin joins hands with Hangzhou, 10 billion yuan

Back in early December 2024, the State - owned Assets Supervision and Administration Commission of the State Council and the National Development and Reform Commission jointly issued policies. It was pointed out that efforts should be made to promote the high - quality development of central enterprise venture capital funds, support central enterprises in initiating the establishment of venture capital funds, and focus on early - stage, small - scale, long - term investments in hard technology.

Soon, the Guoxin Venture Capital Fund was publicly unveiled and announced its signing to be established in Hangzhou.

In January 2025, the fund took a substantial step in its operation. The signing ceremony for the cooperation between the Guoxin Venture Capital Mother Fund and the intended sub - funds was held in Beijing.

"The Guoxin Venture Capital Fund should play the role of long - term capital, patient capital, and strategic capital through market - oriented investment methods, focus on technological attributes, technological value, and emerging fields, and quickly invest in and layout a number of high - quality early - stage hard - technology projects," said Xu Siwei, the chairman of China Reform Holdings Corporation Limited at that time.

Specifically, the initial scale of the Guoxin Venture Capital Fund is 10 billion yuan, with a term of 15 years. The number of external projects of central enterprises invested in should account for no less than 50%, and the investment scale should account for no less than 30%. The investment fields mainly cover integrated circuits, artificial intelligence, biotechnology, future information, future manufacturing, and future health.

This is undoubtedly a vivid example of the multi - dimensional collaboration of "central enterprise capital + industrial leaders + local resources": Five central enterprises, namely China Minmetals, China Iron & Steel Research Institute Group, China National Building Material Group, GRINM Group, and China Electric Equipment Group, as well as two local state - owned assets, Hangzhou Capital and Xingxiang Group, jointly form the co - initiators of the Guoxin Venture Capital Fund.

As the leading party, China Reform Holdings Corporation Limited was established in December 2010 and is 100% directly held by the State - owned Assets Supervision and Administration Commission of the State Council. It emerged in the process of deepening the reform of state - owned assets and state - owned enterprises and was designated as a pilot state - owned capital operation company. As of the end of 2024, China Reform Holdings Corporation Limited had total assets of 980 billion yuan and established and operated funds including the Guoxin Guotong Fund, the Central Enterprise Operation Fund, the Science and Technology Innovation Fund, the Double - Hundred Fund, and the State - owned Enterprise Reform Science and Technology Fund.

It is worth mentioning that before the establishment of the Guoxin Venture Capital Fund, China Reform Holdings Corporation Limited had "come" to Hangzhou many times. As early as September 2016, Guoxin Guokong Investment Co., Ltd. was officially established in Hangzhou. In November of the same year, Guoxin Guotong (Zhejiang) Investment Fund Partnership (Limited Partnership) also settled in Hangzhou. Subsequently, in August 2017, China Reform Holdings Corporation Limited took a stake in Zhejiang Manufacturing Investment Management Co., Ltd. In July 2019, the State - owned Enterprise Reform Double - Hundred Development Fund Partnership (Limited Partnership) was established in Hangzhou.

Flocking to Hangzhou

It is quite remarkable that many national - level funds have come to the fertile ground of Hangzhou.

People still remember that at the end of 2024, the second - phase of the Service Trade Fund, the first national - level mother fund in the field of foreign trade economy, was established with a total scale of 10 billion yuan and settled in Xiaoshan District, Hangzhou, to support the cultivation of new business forms and models in foreign trade, including service trade enterprises in fields such as health technology, cross - border e - commerce, cross - border logistics, overseas warehouses, and the digital economy.

The National SME Development Fund has also arrived. In June 2024, the fund completed the establishment of its sixth batch of sub - funds. Hangzhou - based investment institutions, Puhua Capital and Yuanjing Capital, managed Puhua SME Phase II (Hangzhou) Venture Capital Partnership (Limited Partnership) and Hangzhou Yuanjing New - start SME Venture Capital Partnership (Limited Partnership), which successfully signed contracts to receive investments and were subsequently registered and established in Hangzhou.

Recently, we have seen the frequent presence of central and local state - owned enterprises in Hangzhou.

CNNC (Zhejiang) Science and Technology Innovation Co., Ltd. was established in Hangzhou in June this year with a registered capital of 500 million yuan. It was jointly funded by CNNC (Beijing) Science and Technology Innovation Co., Ltd. and Hangzhou Science and Technology Innovation Group Co., Ltd., focusing on science and technology services and the forefront of the new energy field. Through this cooperation, China National Nuclear Corporation will leverage the scientific and technological innovation environment in Hangzhou to unleash the potential of nuclear technology applications and promote regional industrial upgrading.

This month, China United Network Communications Group Co., Ltd. subscribed to a capital contribution of 1.859 billion yuan and took a 20.26% stake in Hangzhou Zhixun Investment Co., Ltd., which is controlled by the Hangzhou State - owned Assets Supervision and Administration Commission, focusing on tapping the potential of Hangzhou's artificial intelligence enterprises. Almost at the same time, Hainan Holdings, a comprehensive state - owned investment and financing enterprise in Hainan Province, completed the transfer of control rights of Hangzhou Wangying Technology Co., Ltd.

Going back a bit further, in October 2024, the financial asset investment companies (AICs) of the five major banks, namely the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, and the Bank of Communications, signed cooperation agreements with the corresponding city - and district - level state - owned enterprises in Hangzhou. The intended scale of the funds to be established reached 90 billion yuan, making Hangzhou the first city in the country to achieve full cooperation with the five major AICs.

The reason for "flocking to Hangzhou" is easy to understand - Hangzhou has industrial labels such as the "Six Dragons of Hangzhou", 3A games, biomedicine, e - commerce short dramas, biomedicine, and semiconductors, as well as a first - class business environment and a more complete industrial - investment - financing ecosystem.

For example, this year, the Hangzhou government specifically allocated 15% of its industrial policy funds to increase support for future industries such as general artificial intelligence and humanoid robots to cultivate more innovative enterprises like DeepSeek and Unitree Robotics.

The latest event was last month when Hangzhou launched a "five - in - one" service platform for science and technology innovation enterprises and established Hangzhou Market - Scenario Innovation Center Co., Ltd., aiming to provide differentiated and relay - style services for science and technology innovation enterprises at different development stages.

Hangzhou's determination to attract entrepreneurs is obvious.

This article is from the WeChat official account "Jiema LP", author: Feng Yuchen. Republished by 36Kr with permission.