Inspired by the Shanxi Securities Regulatory Bureau and initiated by five fund management companies, the Shanxi Investment Fund Industry Association was founded on May 26. According to incomplete statistics, at present, there are 128 private equity fund management institutions in Shanxi province, raising more than 20 billion yuan.
Private equity fund (PE fund) has been supervised by the China Securities Regulatory Commission since 2013. In mid-April, the Shanxi Securities Regulatory Bureau announced that all PE fund managers must register and file their PE fund with the Asset Management Association of China. On that basis, Shanxi Investment Fund Industry Association was founded and started focusing on PE funds. This means that PE fund is officially recognized as an investment resource.
Since the beginning of 2014, PE industry has been flourishing all over China. To cultivate the private equity market, they’ve been listed in nine regulations of the domestic capital market put forward recently by the State Council. Moreover, under pressure from the economic recession, Shanxi officials plan to enlarge the scale of PE fund to stimulate direct financing. It appears that the golden age of PE industry in Shanxi is near.
PE industry in Shanxi has been in a rapid development since Tong Ren Fund, the first PE fund, settled in Jinzhong in November 2011. Since then, some urbanization construction funds and agricultural investment funds were established. At present in Shanxi, there is an integrated development in venture capital fund, private equity fund, securities investment funds and industrial investment fund, which invest in various industries, including new energy and new resources, urbanization, cultural tourism, medical treatment and public health, and high technology. All the funds are expected to lead financial innovation and guide capital transformation.
There are nearly 160 members in the new Shanxi Investment Fund Industry Association, including different types of funds, institutions and managers. The association will build a bridge between the funds and the real economy to solve financial problems in the development of some projects, thus optimizing the financing structure and promoting the economic restructuring of Shanxi.
